The Centre’s decision to increase by 10 per cent the State’s share in the Central taxes, from 32 ro 42 per cent, was hailed by the leaders of ruling combine in Punjab — Shiromani Akali Dal (SAD) and the Bharatiya Janata Party (BJP).
Chief Minister and SAD patron Parkash Singh Badal on Wednesday asserted that the Centre’s decision would put the States on “strong fiscal pedestal” to carry out development programmes as per peoples’ needs, Union Minister and BJP leader Vijay Sampla maintained that the move would revolutionise the pace of development and welfare activities in State like never before.
Welcoming the move to accept the 14th Finance Commission’s recommendations for hike in share of States in Central taxes, Badal demanded that funds meant for states under the present ‘Centrally Sponsored Schemes’ should also be transferred directly to States as “untied funds”.
“SAD has been a strong votary of greater financial autonomy to the States in true federal spirit, he said. “BJP-led NDA Government has won a nationwide mandate in favour of commitment to federalise the Indian polity and to give a lion’s share to the States from its kitty of central taxes,” he said.
Badal also stressed on the need for liberal investments in the form of direct Central grants to States that were actively engaged on restructuring their agricultural economy through diversification.
Agriculture allied activities such as dairying, fisheries, piggery, goatry, bee-keeping etc must be given promotional incentives such as income tax exemption on par with agriculture, he said.
Similarly, minimum support price for alternative crops under the Swaminathan Commission formula with assured marketing must be put in place on the pattern of wheat and paddy, he said.
At the same time, Badal said that this was just the beginning and the “momentum would need to be carried forward in the years to come with more steps to make the states truly autonomous in matters of policy planning and implementation for regional development as per specific needs of the people”.
Union Minister Vijay Sampla said that the decision will mean that States will have much more financial resources at their disposal to carry out their pro-development and pro-people agenda. “It’s a path breaking decision towards far greater federalism in fiscal matters,” he said.
Sampla said that Prime Minister Narendra Modi, with this one decision, has proved that he is the champion for the cause of “cooperative federalism” with far greater autonomy to the States. “Punjab has been at the receiving end during last two Congress-led regimes at the Centre. The State was denied its due share. But Punjab is back on the path of growth and development,” he said.
Also hailing the Center’s move, Punjab State Planning Board’s vice-chairman Rajinder Bhandari described it as “a very bold and visionary step by Prime Minister”.