Bhubaneswar: Odisha Chief Minister Naveen Patnaik on Wednesday suggested increase in tax devolution from 42 per cent to 50 per cent and making cess and surcharges as part of divisible pool.
During a meeting with 15th Finance Commission chairman N.K. Singh and members of the commission here, Mr Patnaik suggested the 1971 population should be used as devolution criteria.
Some other major suggestions he presented before the Commission include extension of GST compensation for another 10 years, utilisation of the Clean Energy Cess in coal mining areas.
The CM also requested a package for disaster management of Rs 1,500 crore to build more cyclone shelters and improve the warning systems.
Mr Patnaik, while raising the issue of the demand of Special Category Status for Odisha, alleged that the Centre was being negligent towards the state in various sectors.
“Odisha faces natural calamities every alternate year. It is in this premise of historic Central neglect and frequent natural calamities that my government has been demanding Special Category Status for Odisha which will supplement our efforts in transforming the state,” he said.
Later, the FC chairman said the proposal for increase in devolution of taxes was the main item in the recommendations and details on it could be chalked out in next one month after examining submissions of the Union government and other stake holders.
On SCS to Odisha, Mr N.K. Singh said it was not in the purview of the body.
“This is not in the terms of reference of the Finance Commission. As regards the special package to Odisha, the FC would sympathetically consider the demands made to us in the form of a memorandum,” he said.
The FC chairman lauded the state government’s efforts at improving irrigation, doubling income of farmers, growth rate in per capita income and Gross State Domestic Product (GSDP. He also praised the state government’s recently introduced Krushak Assistance for Livelihood and Income Augmentation Yojana and said, if implemented properly with transparent identification of farmers, it would prove to be better than other packages given to peasants.
Mr Patnaik, in his speech, alleged that successive Central governments, unfortunately, have ensured that the state remained at the bottom in tele-intensity, railway network, banking and highways.
“Besides, the state has been neglected in establishment of industrial corridor, coal royalty and drinking water and irrigation and cutting off funds for scheduled areas and KBK (Koraput-Balangir-Kalahandi districts),” the CM said.
