State Govt proposes 50:50 share

By Our Staff Reporter
IMPHAL, Nov 8: The State Government has made a proposal to the 16th Finance Commission for sharing tax revenues between the Centre and States (vertical devolution) at the ratio of 50:50.
Briefing media persons at Hotel Classic Grande today who is currently at Imphal on a three-day visit to the State, 16th Finance Commission Chairman Dr Arvind Panagariya said that the Commission’s members, officers and staff held a meeting with State Government officials on the core mandates of the Commission.
During the meeting which was also participated by Chief Minister N Biren and his Cabinet colleagues, Chief Secretary Vineet Joshi presented a report on the State’s finances.
The report gave a detailed account of the State’s present economic condition including State expenditures, fiscal deficits and outstanding liabilities.
The Chief Secretary also gave a powerpoint presentation, Dr Arvind Panagariya said.
The State Government made a proposal to raise vertical devolution to 50 per cent.
As per the 15th Finance Commission’s recommendation, the State's share is 41 per cent.
In another word, the State is getting 41 per cent from the divisible pool of tax revenues while the Central Government gets 59 pc.
The State Government is  proposing to raise the State’s share to 50 per cent.
As for horizontal devolution (sharing among States), the State Government maintained that the Finance Commission should continue to divide 15 per cent of the States’ share among the 28 States based on the population.
The Government of Manipur also urged the 16th Finance Commission not to apply changes in State shares based on total fertility rate to horizontal devolution, the Chairman told the media.
He said that the Finance Commission makes recommendations for giving grants to States, and these grants come from the Consolidated Fund of India.
These grants include local bodies grants (rural and urban), disaster relief grants, State specific grants and sector specific grants, he added.
Manipur is the 11th State the 16th Finance Commission is visiting and the Commission is yet to visit 17 other States.
After listening to all the States, the Commission would submit a comprehensive report to the Central Government, he said.  
The 16th Finance Commission Chairman said that  they would pay special attention to the North Eastern States including Manipur.