Chief Minister Naveen Patnaik has urged Union Finance Minister Arun Jaitley to restore the Central Sales Tax (CST) rate at 4 per cent till the implementation of Goods & Service Tax (GST).
Patnaik, who met Jaitley in New Delhi on Monday, said Odisha’s fiscal position has been strained during recent years on account of CST losses and non-release or inadequate or untimely release of Central assistance.
He stated that the Union Government has not been fulfilling its commitment since 2010-11 on compensating the State for phasing out the CST. During 2010-11, the State received an amount of only Rs 256 crore towards compensation as against the loss assessment of Rs 664 crore, and no compensation has been received during last three years from 2011-12 to 2013-14, he stated.
The Chief Minister impressed upon the Union Finance Minister to either fully compensate the State for the CST loss or restore the CST rate to original 4 per cent till implementation of GST.
The Chief Minister also drew the attention of the Union Minister to the short release of Plan grants to the State.
He pointed out under the Accelerated Irrigation Benefit Programme (AIBP), the State received only Rs 38 crore against an actual expenditure of Rs 1,084 crore during 2012-13 and has not received any amount during 2013-14 against the actual expenditure of Rs 885 crore.
Similarly, under Central sector scheme MGNREGA, the State received only Rs 757 crore against the approved Central share of Rs 1,363 crore during 2013-14.
The CM observed that short releases by the Central Government have adversely impacted the fiscal health of the State and the implementation of the State Plan schemes/ Central sector schemes. He urged Jaitley to ensure timely and adequate release of Central assistance for the Plan schemes.