BHUBANESWAR: The state government today demanded that the Centre should revise coal royalty and change the sharing pattern of State Disaster Response Fund (SDRF) to 90:10 from 75:25 between the Centre and the states.
The demands were raised by finance minister Sashi Bhusan Behera while participating in the pre-budget consultation meeting convened by the Union Ministry of Finance in New Delhi. Behera said as per recommendations of 14th Finance Commission the sharing pattern of SDRF should be changed to 90:10 once GST is in place. As GST has been implemented from July 1, 2017, the sharing pattern between the Centre and the states should now be changed, he said.
Stating that the royalty on coal was last revised by the Centre in April 2012, Behera said the royalty rate should be revised every three years. Therefore, the coal royalty revision is due since April 2015. "The Government of India should revise the royalty on coal immediately without further delay," Behera said.
The finance minister also demanded Credit Guarantee Trust Fund for the purpose of providing guarantees in respect of borrowers in the farm sector. Availability of bank credit without collateral and third party guarantees would go a long way in providing access to long-term credit for the farmers for capital investment as well as working capital to set up enterprises in the agriculture and allied sectors, he said.
Behera asked the Centre to review its decisions for monthly release of tax devolution to states on 15th of every month instead of the first working day of every month. He said the decision of the Centre will adversely affect the finances of the states as a major proportion of expenditure on account of salary and pension is incurred in the first week of the month. He also requested the Centre to revise its decision to release the stare of corporation tax and income tax in four quarterly instalments instead of monthly release from the 2018-19 financial year.
Odisha government also demanded exemption of Income Tax on the interest income of District Mineral Foundations (DMF) from bank deposits. Behera also highlighted the state's difficulties in going to total financial inclusion in Odisha due to lack of brick and mortar bank branches and lack of connectivity in the State.