Uttar Pradesh (UP) Chief Minister Akhilesh Yadav has written a letter to Prime Minister Narendra Modi saying following a recommendation by 14th Finance Commission the State is set to lose over Rs9,000 crores, as the Centre’s share and demanded that the old State-Centre share formula be adopted.
“The 14th Finance Commission has increased the State’s share from 32 per cent to 42 per cent, which suggests that the State would get more from the Centre. But the fact is that the Centre’s share in Centrally-sponsored schemes has been slashed resulting in lesser share for UP for Central schemes,” Yadav said in his letter, which was released to the media on Friday.
He said States like UP will suffer following the Finance Commission’s decision to stop grants to States in select projects and de-link some of the Centrally-sponsored schemes. Thus, there is a sharp decline in UP’s share in Central schemes, he said.
“The financial devolution carried out under the formula of 14th Finance Commission will provide Rs94,313.46 crore and if the formula of 13th Finance Commission was adopted, UP would have got Rs1,03,371 crore. Thus, UP will get Rs9057.73 crore less than last year,” Yadav said in his letter.