Bhopal (Madhya Pradesh): Managing petrol and diesel is a major challenge for the state government, although it is encouraging electric vehicles.
It cannot ignore the sources of income but will slowly impose cuts on the VAT. Chief Minister Mohan Yadav, who plans to find a solution to these problems in the upcoming budget, made the statement in reply to a question on VAT on petrol and diesel at a press conference on Tuesday.
About the reduction of state’s share in the central taxes, Yadav has said it is not going to happen that the state will get funds from the Central Government on the grounds of poverty or the state being large.
The states, which have more GDP will get more funds, he said, adding that the states can help people mitigate their sufferings, but they will not get their share of central taxes.
Taking such a decision on the basis of the recommendations of the 16th Finance Commission requires guts, he said.
According to Yadav, the state government is working on such schemes as can fetch more funds from the Centre.
The state will also make efforts to increase its GDP, the Chief Minister said.
It is a boon for MP to get funds for the development of tier-II and tier-III cities, he said.
MP is one of the three states whose capital expenses are the highest in the country, Yadav said, adding that the employment rate is also lower, whereas in terms of population, it is the fifth largest state in the country.
BJP’s state president Hemant Khandelwal, in charge of the state party unit Mahendra Singh, and Deputy Chief Minister Jagdish Devda were present at the press conference.
