Punjab Lose RS 500 CR In Central Taxes
PUNJAB TO LOSE RS 500 CR IN CENTRAL TAXES
Jalandhar June 12:
Owing to economic slowdown and decline in collection of various taxes, Punjab’s share from the central taxes will go down by Rs 500 crore this year.
And Punjab will not be only to suffer such a revenue loss that is devolved to the states from the Centre, states like Bihar, Uttar Pradesh, Orissa, Maharashtra and Andhara Pradesh also stand to suffer a loss of several hundred crores.
Punjab Finance Minister Manpreet Singh Badal, who is a member of the Empowered Committee, a body of Finance Ministers of various states set up by the Central government to deal with fiscal matters related to the states, conveyed this to the Union Finance Minister Pranab Mukherjee and his senior officials in Delhi today.
Terming the current fiscal year as cruelest for the states, Manpreet Badal said Mukherjee had been apprised today with regard to the crisis on fiscal front faced by various states in the country. Speaking to reporters, Manpreet Badal said Finance Ministers of Punjab, Haryana, Kerala, Meghalaya and some other states were present at today’s meeting with Mukherjee.
Manpreet has urged Mukherjee to share 50 per cent of the fiscal burden to be put on the state by the revision of pay scales. He said there would be a burden of Rs 2,700 crore because of pay revision in the state during the current fiscal year. The Central government had been asked to pay Rs 1,350 crore in this regard. He said the Centre was first to revise the pay scales and to implement the same.
The state government had to do it following the Centre. He said in fact the Central government would earn from pay revision in states as employees following pay revision would have to give more income tax on their salaries to it. Manpreet Badal said there were consensus among states on four issues and one of them was to ask the Union Finance Minister to share 50 per cent burden of revised pay scales in the states.
The Centre had been told to suspend the Fiscal Responsibility and Budget Management Act for the last and current fiscal year. He said owing to the recession and slowing down of the economy even the Union Government itself was unable to conform to the provisions of the Act and to manage the fiscal deficit to the fixed level.