The effect of advocacy for the state’s rights made in front of the 15th Finance Commission is evident in the recommendations made by the commission, said the Chief Minister Trivendra Singh Rawat.
The 15th Finance Commission has recommended revenue deficit grants for Uttarakhand, as a result of which the State will have a benefit of at least Rs 2,000 crore per year. The commission has also recommended increasing the state share in central taxes which will result in Rs 300 crore to Rs 400 crore benefit for the state per year.
The Chief Minister said that due to the state presenting its position clearly in front of the 15th Finance Commission, it had agreed on various points and made recommendations in favour of the State.
Thanking the commission for understanding the state’s view and making necessary recommendations, Rawat said that this will help Uttarakhand move more swiftly on the developmental path. The commission agreed that Uttarakhand provides valuable eco-system services to the nation.
Considering this, the commission was requested to increase the share of forests under the devolution formula- a green bonus. Under the devolution formula, the commission has increase the share of forests from 7.50 per cent to 10 per cent. Rawat had also informed the commission that the previous commission had ended the revenue deficit grant which had caused considerable loss to the state.
Acknowledging this, the 15th Finance Commission has recommended revenue deficit grant for Uttarakhand, which will result in minimum Rs 2,000 crore benefit to the state per year.
Last year, the state had received about Rs 254 crore for calamity relief fund under disaster management. The State sought necessary assistance for tackling the natural disasters experienced in Uttarakhand.
Acknowledging this, the 15th Finance Commission has increased the calamity relief fund allotment to about Rs 1041 crore per year.
The 14th Finance Commission, as part of the basic grant for 2019-20 had recommended a total of Rs 704.10 crore for urban local bodies and Panchayati Raj institutions.
Increasing this amount, the 15th Finance Commission has recommended a total sum of Rs 852 crore in 2020-21 for urban local bodies and Panchayati Raj institutions. This marks an increase of about 21 per cent, added the Chief Minister.