Pre-budget Meeting of State Finance Ministers
Chhattisgarh on Monday reiterated its demand for a ‘special category’ status for the State at the pre-budget meeting of State Finance Ministers with Union Finance Minister Arun Jaitley in New Delhi.
Chhattisgarh Commerce and Tax Minister Amar Agrawal, who read the State Finance Minister’s speech said that the Planning Commission in its Indian Human Development Report 2011, had adjudged Chhattisgarh as one of the most backward States of the country on the basis of Human Development Index.
Elaborating its stand on the issue, he further said that as per National Sample Survey Organization (NSSO) report published in 2013 on poverty level, Chhattisgarh has the highest ratio of BPl families in the country (39.9 per cent).
He stated the Raghuram Ranjan Committee in its report has also mentioned that Chhattisgarh is amongst the least developed States in the country. Agrawal also added that most of the districts in the State were dealing with Maoist menace.Chhattisgarh Additional Chief Secretary (Finance) DS Mishra was also present at the meeting.
Highlighting the issue of CST revenue loss, the Minister said the Chhattisgarh Government has received Rs 800 crore less in the last three years and demanded that the amount be compensated from other sources.
He mentioned that the Union Government had decided to lower the CST from 4 per cent to 2 per cent from June 1, 2008, and an agreed compensation package for consequential revenue loss to the State had been worked out.
The Union Government paid CST compensation for 2007-08, 2008-09 and 2009-10 as per revised compensation guideline. But, the Centre is yet to release Rs 3,085 crore to Chhattisgarh as CST compensation, Agrawal said.
He urged the Centre to make a provision in this regard in 2014-15 Budget. Agrawal urged the Centre to allow state governments to impose service tax. Bringing the issue of CAMPA funds, he demanded that the amount received under CAMPA fund should be increased and a permanent CAMPA fund should be established in place of Supreme Court’s ad-hoc CAMPA funds by enacting an act.
The State has so far deposited Rs 2500 crore in the CAMPA fund as per the Supreme Court’s directions and Rs 600 crore has been added to the principal amount as interest. But the State receives only 10 per cent of the principal amount annually as per the directions of the Supreme Court. Of the total amount of Rs 3100 crore deposited in the fund, the state has so far received only Rs 600 crore, he said.
The State Government also demanded increase in modernisation of police force and allotment of SRI unit keeping in mind the Naxal problem in Chhattisgarh.
Other issues discussed in the meeting were increase in branch network of banks in rural areas for avoiding delay in payment of wages and abolition of central production cost on fly-ash bricks.