Finance Minister slams Centre for fund cuts

Amaravati: Finance minister Yanamala Ramakrishnudu on Friday expressed disappointment over the fund sharing between the Centre and states. 

Speaking to media at the Secretariat, he said though the Centre was claiming that they have been giving 42 per cent of tax share under devolution to the states, the net tax proceeds were not at that percentage.

Even though the devolution of tax net was increased from 32 to 42 per cent as per the recommendations of 14th Finance Commission, Yanamala said, at the same time, the Centre changed the sharing pattern of Centrally-sponsored schemes under grants-in-aid and reduced it to 60:40 ratio from 75:25 between the Centre and state respectively.

Before the approval of 42 per cent devolution, the states contributed 25 per cent of expenditure under grants-in-aid projects, but now the burden increased on the states. 

Yanamala said the states were suffering due to lakh of resources in implementing welfare schemes and development programmes and added the states were victimised even in fulfilling the manifestos.

“The recommendations of the 13th Finance Commission were far better than 14th Finance Commission. But the 15th Finance Commission recommendations are most worse than the 14th Finance Commission.” the finance minister observed.

Revealing the facts behind indirectly increasing burden on the state governments by the Centre, Yanamala took serious objection over Centre launching some programmes unilaterally without considering or even taking the opinion of states and then abruptly withdrawing or cancelling them.

For instance, the Central government started implementation of Model Schools Concept without the consent of the states, he said and added but, it was abandoned abruptly burdening the state governments.

Like that, the Centre started procurement for civil supplies initially and suddenly it withdrew from it. On the other hand, the state governments were made responsible for providing consumer goods to public under the civil supplies, he explained.

It would be very difficult for states to stop civil supplies procurement and the people will blame the state governments and not the Centre, he pointed out. He also raised objection over the Centre making legislations in concurrent list of the constitution without consulting state governments.