At a high level meeting at Chief Minister’s residence on Thursday, Union Finance Minister Arun Jaitley expressed consent on important fiscal issues of the State and assured early solution. Chief Minister Shivraj Singh Chouhan gave a detailed account of issues pertaining to fiscal management in the State to Jaitley.
Chouhan expressed gratitude towards Central Government and Finance Minister Arun Jaitley to increase the States’ share in Central tax from 32 per cent to 42 per cent and allowing the States to spend it as per their requirements.
The Chief Minister informed that the State’s economic growth rate stood at 9.94 per cent during 11th Plan. A target has been set to increase it to 12 per cent during the 12th Five-Year Plan. The growth rate was 10.9 per cent during year 2014-15. Agriculture growth rate stood at 24.99 per cent. He informed the Union Finance Minister that Madhya Pradesh has been a revenue-surplus State continuously since year 2004-05 and has been performing outstandingly in management of fiscal deficit during last 9 years.
Chouhan informed that Madhya Pradesh is ahead of all States in Pradhanmantri Jan-Dhan Yojana by opening over 113 lakh bank accounts. Second phase of the scheme has already been launched.
Referring to recommendations of 14th Finance Commission, Chouhan expressed gratitude towards Jaitley on behalf of the State.
He said that Central Government’s decision to increase States’ share from 32 per cent to 42 per cent will accelerate pace of development works in States. The meeting also discussed grants received under lift irrigation programme, special backward area grant scheme, mid-day meal scheme, Sarv Shiksha Abhiyan, Pradhan Mantri Gram Sadak Yojana and National Agriculture Development Scheme.
Jaitley gave consent to making available amount of Rs512 crore as State’s share in Central Sales Tax for period from 2010-11 to 2013-14 in 2 installments. With reference to recommendations of 14th Finance Commission, the Chief Minister said that limit of fiscal deficit of States can be increased by over 3 per cent in special circumstances. This would help States in mobilising financial resources. Jaitley consented and assured to consider this.
The Chief Minister urged that if Central Budget given to States from Union Ministries is provide in the first quarter of financial year, it would facilitate in further continuing work of ongoing schemes. He also urged to reconsider interest rate on assistance received from NABARD for infrastructure development. The Chief Minister drew attention of the Union Minister towards different definitions of Jan-Dhan Yojana being used in rural areas by Insurance Regulatory Development Authority and Reserve Bank of India.
This is creating difficulty on field level in implementing micro insurance. In this regard, definition of Business Correspondent Agents given by Reserve Bank of India will be suitable to maintain uniformity. The Chief Minister also urged to include Regional Rural Banks as members of Credit Guarantee Trust Fund for micro entrepreneurship.