BENGALURU: Ahead of the visit of the 16th Finance Commission, headed by its chairman Arvind Panagariya, former vice-chairman of NITI Aayog, on August 29, Chief Minister Siddaramaiah held a crucial meeting with finance department officials at his residence here on Friday.
It was decided to put forth a memorandum to the Commission to compensate for the alleged injustice meted out by the Centre, which had denied the 15th Finance Commission’s recommendation of Rs 5,495 crore as a special package. Union Finance Minister Nirmala Sitharaman had denied it, saying the 15th Finance Commission did not recommend it in its final report.
The issue of reduction in the state’s share of central taxes from 4.71% in the 14th Finance Commission to 3.64% in the 15th Finance Commission -- which led to a loss of approximately Rs 62,098 crore over five years -- would be raised, sources said.
The state will also raise issues with regard to GST, and its share in collection of cess on fuel. For every Rs 100 paid to the Centre, the state is getting a mere Rs12-13 in its account, despite being the second largest tax generator in the country after Maharashtra, according to Siddaramaiah. The issue would be discussed with the Finance Commission, seeking its intervention to revise guidelines to rectify the imbalance, an official who took part in the meeting said.
Revenue Minister Krishna Byre Gowda, CM’s Financial Adviser Basavaraj Rayareddy, Additional Chief Secretary LK Atheeq and others were present at the meeting. Another meeting will be held ahead of the Commission’s visit, where a clear-cut proposal will be discussed, the official added.