BHUBANESWAR: With pre-budget consultations between Centre and states kicking off, Odisha government on Monday reiterated its demand for fixing the sharing pattern in the Centrally Sponsored Schemes (CSS) on par with North-Eastern (NE) and Himalayan states.
The sharing pattern of CSS for NE and Himalayan states is 90 per cent for Centre and 10 per cent for the latter.
Participating in the consultation meeting convened by Union Finance Minister Nirmala Sitharaman through video-conference, State Finance Minister Niranjan Pujari said that the Centre should give advance indication on Central assistance for CSS and release funds as per commitment.
The Centre should stop off-budget transfers of funds for CSS, he said and added, even if it is an off-budget resource, it should be routed through the Reserve Bank of India (RBI). He also requested that states should be allowed to operate CSS directly instead of opening separate scheme-based bank accounts.
In the 2020-21 budget, the State government had estimated its share in Central taxes at Rs 36,300 crore and grant-in-aid of Rs 32,000 crore, which, totalling Rs 68,300 crore, was 55 per cent of its own budget of Rs 1,50,000 crore. However, the budget went haywire because of the Covid-19 pandemic as the economy came to standstill.
In view of the fluid situation prevailing now, the Finance Minister said that adequate provisions should be made for piped drinking water projects, livelihood and employment generation programmes.
Pujari said that steps should be taken by the Centre for addressing power sector issues like amendment in tariff policy to terminate very old power purchase agreements (PAAs) and amendment of Electricity Act, 2003 to allow all hydro projects under the Renewable Purchase Obligation (RPO).
Besides, steps should be taken to enable the distribution companies/State’s bulk power procurers to participate in tenders floated by Solar Energy Corporation of India (SECI) for procurement of bundled power for reduction in purchase cost of distribution companies, he said.
Calling for allocation of at least Rs 5,650 crore for the telecom sector in Odisha for 2021-22 in the Union Budget, the Minister said that sufficient funds should also be allocated for development and maintenance of national highways.
The Finance Minister said a provision of at least Rs 7,200 crore should be made for railway infrastructure in Odisha for speeding up the ongoing projects, sanctioning of new lines, station modernisation, establishment of rail-based industries and development of multi-modal logistics parks.
Pujari said there should be amendment of relevant provisions in the Central Sales Tax Act, 1956 to prohibit misuse of ‘C’ forms by manufacturers, mining and works contractors for inter-state purchase of high speed diesel by paying CST at two per cent.
Steps should be taken to gradually eliminate cess and surcharge on the customs duty and direct taxes, he said.
DEMANDS
90:10 CSS sharing pattern
Rs 7,200 cr for railway infra
Rs 5,650 cr for telecom sector
Amendment of Central Sales Tax Act, 1956 to prohibit misuse of ‘C’ forms