Meghalaya Govt Seeks Rs 1.2 Lakh Crore Grant: 16th Finance Commission Chairman
By Our Reporter
SHILLONG, Sep 30: The Meghalaya government has requested a grant-in-aid of Rs 1.2 lakh crore over the next five years from the 16th Finance Commission. However, Chairman Arvind Panagariya suggested that full central support for this ambitious proposal is unlikely due to the central government’s discretionary role in grant allocations and the significant devolution of central tax revenue since the 14th Finance Commission.
In a meeting with Chief Minister Conrad K Sangma and his Cabinet, Panagariya highlighted the challenge of adjusting the vertical devolution rate from 41% to 50%, as requested by Meghalaya. He cautioned that sudden increases could disrupt the fiscal balance among all states and strain the central government’s resources.
The Meghalaya government also proposed increasing the allocation weight for forest cover from 10% to 15%. Despite lauding the state’s progress in areas like maternal mortality and early childhood development, Panagariya pointed out concerns about the state’s fiscal health, noting its higher-than-desirable debt-to-GDP ratio and fiscal deficit.
Additionally, Meghalaya sought Rs 43,251 crore for critical sectors such as agriculture, tourism, road connectivity, and urban development, among others. The state also requested Rs 69,324 crore to cover its pre-devolution gap, Rs 500 crore for restructuring state public sector enterprises, and Rs 1,670 crore in grants for local bodies.
During consultations, political parties like the United Democratic Party (UDP), Hill State People’s Democratic Party (HSPDP), and the All India Trinamool Congress (AITC) emphasized issues such as urban development, infrastructure, health, and education. They stressed the importance of timely fund releases and urged the Finance Commission to enhance climate change efforts and water catchment protections.
The 16th Finance Commission’s tour continues, with decisions pending until all states have been consulted.
Ends
Original Story https://theshillongtimes.com/2024/10/01/centre-unlikely-to-fully-back-states-grant-in-aid-request/
Category : MEGHALAYA
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