Alleging a bias against the state government Chief Minister Akhilesh Yadav has written a letter to Prime Minister Narendra Modi saying that 14th Finance Commission’s recommendations have squeezed fiscal assistance from the Centre leaving the finances of Uttar Pradesh in a dire strait affecting state’s resolve to strengthen judiciary.
“This fiscal there is 44 per cent decline in fiscal assistance central government assisted projects. The state government is now being forced to make up this loss from its own resources. UP is also not getting its share of central taxes. This skewed distribution will definitely affect development of the state as well as state’s endevour to strengthen judiciary system in UP,” Yadav said in his letter to PM which was released to media on Thursday.
He said that Union Government had promised 15 per cent increase in central tax distribution to Uttar Pradesh taking state’s share in this fiscal to Rs 86.729 crore against Rs 75,416 crore in 2014-15.
“Whereas, under 14th Finance Commission recommendation state’s share was projected as Rs 94,314 crore. But in reality, we if evaluate, there is just an increase of Rs 7,585 crore. This fiscal space is not enough to keep the engine of development going, Yadav said.
He said central government has de-linked many schemes from the budget thus by meaning state will have to operate these schemes from its own resources. The 44 per cent cut in central budget to state will add an additional burden of Rs 8,500 crore on the state exchequer. “The state government has not given any fiscal space for this,” he said.
“In this scenario it will be difficult for the state to strengthen the judiciary system in the absence of help from the central government. The High Court in its order Brij Mohan lal versus Union of India and others has directed the centre to support state in strengthening judiciary system,” Chief Minister said.