Fifteenth Finance Commission said this can pose a major problem for the government
Fiscal deficit as a percentage of GSDP was 3.55 per cent and marginally exceeded the ceiling of 3.5 per cent fixed by the 14th Finance Commission, the CAG report stated
With the present trend of population growth, the South will only lose more LS seats on the basis of 2031 population, which will go to the Hindi-belt’s Northern states.
The commission, which has been mandated to use 2011 census data rather than the one of 1971 for resource allocation, was to submit its report by October 30, 2019.
The 15th Finance Commission is scheduled to submit its report to the government by November 30.
According to reports, the FFC is likely to recommend that the Central government either prune or eliminate some CCSs.
According to a report announced by the Central government, in 2018-19 financial year, Telangana figured among the top states in Gross State Domestic Product (GSDP) with 14.84 per cent growth rate.
The CM requested Finance Commission chairman N K Singh to consider state-specific grants for development in various sectors and railway expansion.
The 18 per cent cut of funds includes a five per cent cut with regards to Centrally Sponsored Schemes (CSS). Cuts do not bode well for State govt schemes such as Rythu Bandhu, Rythu Bhima.
Besides, the FFC had also recommended that the State’s share in Central taxes should be `48,250 crore in 2019-20.
Kejriwal said for the growth of the nation, Delhi contributes Rs 1.75 lakh crore as income tax to the Centre but gets back only Rs 325 crore for its own development.
A proposal to this effect was discussed at the first meeting of a 'High-Powered Committee of Chief Ministers for Transformation of Indian Agriculture' on Thursday.
Currently, the Centre-state formula for resource sharing as drawn up by previous finance commissions is 58:42.
The government notified the 15th Finance Commission to suggest the formula for devolution of funds to states by the Centre for five years commencing April 1, 2020.
MoS Home Nityanand Rai said that the 14th Finance Commission has not made any distinction between special and general category states.