Tax Devolution: Odisha for 18 Per Cent Hike

Odisha Chief Minister Naveen Patnaik on Monday demanded that the existing level of tax devolution to the states should be raised from 32 per cent of tax receipts of the Centre to 50 per cent.

Published: 10th December 2013 01:33 AM  |   Last Updated: 10th December 2013 01:33 AM   |  A+A-

Odisha Chief Minister Naveen Patnaik on Monday demanded that the existing level of tax devolution to the states should be raised from 32 per cent of tax receipts of the Centre to 50 per cent.

Addressing a meeting of the 14th Finance Commission headed by Y V Reddy here, the Chief Minister said the share of Odisha in aggregate transfer of resources recommended by successive Finance Commissions, shared tax and grants was going down. He said a suitable fiscal transfer formula should, therefore, be devised so that states could receive their due share.

Stating that tax devolution is a major part of transfer of resources to the states, Naveen maintained that though bulk of the expenditure responsibility lies with the states, the buoyant sources of revenue are with the Centre.

A proper distribution largely determines the state’s share in central taxes, he said. On the grants-in-aid front, Naveen said acute gap in delivery of services due to resource constraints is important and should be taken into account while recommending the conditions attached to the grants. Stating that Odisha is vulnerable to disasters, Naveen said while floods and droughts were recurring phenomena in the state, severe cyclones caused widespread damage and devastation.

The Chief Minister said the state was in favour of implementation of Goods and Services Tax. At the same time, Odisha has been arguing for safeguarding the state’s fiscal autonomy and standing constitutional arrangement for compensating the state for loss on account of its implementation, he said.

Naveen said though Odisha’s growth rate has been above the national average over the past 10 years, the state suffered from deficiencies in critical infrastructure. The socio-economic indicators, though improving, remain below the national average, he said, stressing on the need for investments to develop the state.

Stay up to date on all the latest Odisha news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp