NEW DELHI, Feb 24 � The 14th Finance Commission�s recommendation is bad news for Assam as its grants-in-aid have been slashed by over Rs 2,000 crore. The State will get grants-in-aid of Rs 3,379 crore, in addition to the 3.311 per cent inter se share of States from the Centre.
According to the recommendations of the 14th Finance Commission laid in the Parliament here today, Assam is among 10 other revenue deficit States to receive the grants-in-aid. But there is a catch as the entire sum would be paid in two instalments in the 2015-2016 and 2016-2017 financial years. For the rest of the three fiscals, the State would draw a blank.
In comparison, Assam was given a handsome hike by the 13th Finance Commission, recommending the transfer of Rs 57,832.70 crore during the 2010-2015 period.
The 13th Finance Commission�s award came as a boon for the Gogoi Government. Assam was given grants-in-aid totalling Rs 5,512.10 crore.
Union Finance Minister Arun Jaitley, who was briefing newsmen, when asked why Assam�s grants were being limited to two instalments, said that the State would cease to be a revenue deficit State. Assam�s share in the Service Taxes has been calculated at 3.371 per cent.
The deficit States in the North-east include Assam, Meghalaya, Mizoram, Manipur, Nagaland and Tripura. Assam will get two instalments of Rs 2,191 crore and Rs 1,188 crore. In contrast, Himachal Pradesh will get a grant-in-aid of over Rs 40,000 crore.
The North-eastern States have been earmarked grants-in-aid of Rs 10,227 crore (Manipur), Rs 1,770 crore (Meghalaya), Rs 12,183 crore (Mizoram), Rs 18,475 crore (Nagaland) and Rs 5,103 crore (Tripura).
Andhra Pradesh, Assam, Kerala and West Bengal are bigger States, which are revenue deficit; so the Finance Commission has calculated the revenue deficit over the next five years on a tapering basis. Over and above the 42 per cent and the municipality grants, an additional amount has been allocated to the State as far as the revenue deficit States are concerned, Jaitley said.
The FFC has recommended �Post Devolution Revenue Deficit Grants� of a total of Rs 1,94,821 crore for the five-year period.
Jaitley said that the FFC has recommended by a majority decision that the State�s share in the net proceeds of the Union tax revenue be 42 per cent. The recommendation of tax devolution at 42 per cent is a huge jump from 32 per cent recommended by the 13th Finance Commission. �The transfer to the State will see a quantum jump,� said the Union Finance Minister.