State has not yet received a fund of Rs 400cr as its share
BHOPAL: Minister for finance and commercial tax, Jayant Mallaiya has urged the Central government to raise the share of states in tax revenue from 32.5 to 50 per cent. Mallaiya attended a meeting of state finance ministers called by Union finance minister Arun Jaitley in New Delhi on Monday.
Mallaiya in his address said that the state government got a fund of Rs 1155 crore as central devaluation last year in the month of March, which could not be utilized. He said the said fund must be given at the right time so that it could be utilized. He said the state has not yet received a fund of Rs 400 crore as its share in Central sales tax for last three years.
He said last year Rs 2000 crore was less received from central taxes. Similarly, the state could not get aid of Rs 1000 crore. Mallaiya urged for the release of the said funds. He also said that the limit of fiscal deficit under FRBM Act should be raised from 3 to 5 per cent so that more fund could be available for infrastructure development and social works.