06/06/2024, 18:21 Govt non-committal on granting special category status to any state - Daily Excelsior

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Govt non-committal
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category status to any state

By Daily Excelsior - March 30, 2023

NEW DELHI, Mar 29:

The Centre on Wednesday remained non-committal on granting the Special Category Status to any
state, saying the 14th Finance Commission has not made any distinction between the general category
and special category states and it has increased the net shareable taxes to all states substantially.
The written reply of the Union Minister of State for Home Nityanand Rai came in response to YSR
Congress member V Vijayasai Reddy’s question on whether the Government has announced that
henceforth no special category status would be given to any state.
“The Fourteenth Finance Commission (FFC) had not made any distinction between general category
states and special category states in the horizontal distribution of shareable taxes amongst the states,”
he said.
The Minister said as per the recommendations of the FFC, the Union Government had decided to
increase the share of net shareable taxes to the states from 32 per cent to 42 per cent for the period
2015-20.
He said the same has also been retained by the Fifteenth Finance Commission at 41 per cent (1 per cent
adjusted on account of creation of UT of Jammu and Kashmir) for the period 2020-21 and 2021-26.
“The objective has been to fill the resource gap of each state to the extent possible through tax
devolution. Also, Post-Devolution Revenue Deficit Grants have been provided to states where devolution
alone could not cover the assessed gap,” he said.
Rai said the Central Government has agreed to give special assistance to Andhra Pradesh to make up
for the additional central share the state might have received during 2015-16 to 2019-20, if the funding
of centrally sponsored schemes would have been shared at the ratio of 90:10 between the centre and
the state.
The special assistance is to be provided by way of repayment of loan and interest for the Externally
Aided Projects (EAPs) signed and disbursed during 2015-16 to 2019-20 by the state, he said.
For the eight Northeastern states, Himalayan states of Uttarakhand, Himachal Pradesh and UT of
Jammu and Kashmir, Rai said, as per the recommendations of the sub-group of chief ministers on the
rationalisation of centrally sponsored schemes, the sharing pattern of funding of core schemes under
the centrally sponsored schemes is 90:10 between the centre and the state.
For the rest of the states, the sharing pattern is 60:40, he said. (PTI)

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