Haryana Chief Minister Manohar lal on Tuesday hailed the Centre's move of accepting the 14th Finance Commission's recommendations for a substantial hike in share of States in Central taxes. Thanking Prime Minister Narendra Modi, the Chief Minister said that the acceptance of recommendation of transfer of 42 per cent of divisible pool to the States including taxes, grants, etc, was in the true spirit of cooperative federalism.
Haryana was allocated an amount of Rs15,199 crore as share in Central taxes for the TFC period, which has increased to Rs42,798 crore in the 14th Finance Commission. The grants in the 13th Finance Commission period were Rs4,270.84 crore and the 14th Finance Commission has recommended Rs7,662.47 crore for the same.
“The decision to significantly increase the states share will enable the states to utilise the enhanced resources according to the felt needs of the residents of the State,” said Manohar lal.
He also welcomed the decision to give up the distinction between plan and non-plan allocations. The Chief Minister said that the increase of approximately 10 per cent of the share in the Central Taxes will provide an additional almost 1.78 trillion rupees to the States. He complimented the Central Government for accepting this increase which has provided a paradigm shift in the total devolution of funds to the States.
The basic grant provided to local bodies in Haryana is Rs5,159.120 crore for the 14th Finance Commission award period as against an allocation of Rs1,521.3 crore in the 13th Finance Commission award period. An amount of Rs1,699 crore has been allocated to Haryana under the State Disaster Response Fund in the FCC for 2015-2020 as against an allocation of Rs844 crore in 2010-2015 under the 13th Finance Commission.