Bjp Grantd 1 Lakh 41K Cr To Ap

[TOM_BHAYYA]

Tempr lo beach dilg untundi okati
Mari nuv emduku cheyaledu
Chetanite chey lekapote anni musukuni blaw blaw

Kani new membr kada respect

Agreed

[Piscop]

[Yuvatha]

[pithaka]

Final ga entha istunnaru Jackie?

[simplee]

monna venkiah naidu ni thittinollu antha line lo ochi ongondi ra ippudu @3$%

 

callaing ...valla leader piscop...
 

[ARYA]

[thedarkknight]

Edi entire..? Taxes lo centre state ki eche percent aa...?? Bihar lucha gallaki 10% enduku giving adalu vallu tax kadatara...??

service tax + deficeit budget + enka vache funds batti eche amount anukunta adhi 

 

bihar population ekkuve untundhi ga so konchem ekkuva %  e vasthundhi 

[thedarkknight]

picchie punes 1lakh 41 cr request chesindi AP govt kani vallchindi 22cr e kada .  enduku vestharu ilanti lafoot posts

 

 

This includes a request from Andhra Pradesh (successor State) and Telangana for amounts of Rs. 1,41,467 crore and Rs. 20,951 crore respectively in the context of the bifurcation of undivided Andhra Pradesh.

1.41lk crs e 22kcrs sambandham ledu 

[thedarkknight]

t able chusandi ardham avthundhi 1o years central tax anedhi tappua dhi 5 years dhe 

[thedarkknight]

22k crs anedhi prathi year konchem amount motham 5 years estaru 

 

central nundi varioud development pojects ki staes governaments request chesthayo 

 

a grant ap 141lkh crs tg ki 20kcrs

 

e commision report ni central accept chesindhi kabbati so avi manaki ravchu ani conclude chesaru anukunta news papers 

[gundubabu]

Malli M chupinchaada Modi

[posaanisam]

1. The 14th Finance Commission was constituted by the President of India on January 02, 2013 under Article 280 of the Constitution to make recommendations on specific aspects of Centre-State fiscal relations during 2015-2020 period. The Commission, chaired by Dr Y.V. Reddy, submitted its report to the President on December 15, 2014 covering all aspects of its mandate, including the special reference made by the President under Section 46 (1) of Andhra Pradesh Reorganisation Act 2014, “to take into account the resources available to the successor States and make separate awards for each of the successor States”.

 

2. The Report of the 14 Finance Commission and the Action Taken by the Central Government on the Report was laid on the Table of the House on yesterday, February 24. The award of the 14th FC becomes will become effective on 1 April 2015 and will remain in force until 31 March 2020. The specific details of the financial allocations to the States resulting from the Finance Commission’s recommendations will be reflected in the Union Budget to be presented by the Finance Minister on 28 February 2015. However, based on the content of the Commission’s Report available in the public domain, the Union Government has accepted the following key recommendations of the Finance Commission.

 

1. Share of Union Taxes

3. The Finance Commission has recommended that the share of the States in the net proceeds of Union Taxes be fixed at 42%. The Commission felt it would serve the twin objectives of ‘increasing the flow of unconditional transfers to the States and to leave adequate fiscal space for the Centre to carry out specific purpose transfers to the States’.

 

4. The criteria and the weightage assigned for intense determination of the share of taxes between the States is as follows:

Population (1971) 17.5%
Demographic change / Population (2011) 10%
Area ` 15%
Forest cover 7.5%
Income disparity 50%

 

 

[posaanisam]

5. Accordingly, the share of Andhra Pradesh in the divisible revenue pool excluding the Service Tax is around 4.305%; the share in Service Tax would be 4.398% (Jammu & Kashmir has no Service Tax). The share of AP during Thirteenth Finance Commission award (2010-2015) was 4.140%. The share of Telangana State is determined at 2.437. The estimated divisible pool and the likely share of Andhra Pradesh for the period from 2015-16 FY to 2019-20 FY is as follows:

Financial Year 2015-16 2016-17 2017-18 2018-19 2019-20 5 years

Divisible Pool 5,79,282 6,68,425 7,72,304 8,93,430 10,34,745 39,48,187

AP Share 24,938 28,776 33,248 38,462 44,546 1,69,969

 

6. The total central divisible revenue pool estimated by the 13 Finance Commission for the period from 2010-11 to 2014-15 was Rs 14,48,096 crores. Whereas, the divisible pool during the 14 FC period is estimated to be around Rs 39,48,187 crores. An increase of 272.6% in tax revenues of the centre during the next five years is expected to be on account of increased economic growth and the launch of Good and Services Tax (GST).

 

2. Revenue Deficit States

 

7. The 14 FC has identified eleven (11) revenue deficit States, which includes Andhra Pradesh, Assam, Kerala, West Bengal, Himachal, J&K and other smaller states. It recommended an allocation of Rs 22,113 crores over five years to Andhra Pradesh, which is about 11.38% of the total allocation to eleven States over five years amounting to Rs 1,94,821 crores. The recommended allocation to is as follows:

2015-16 2016-17 2017-18 2018-19 2019-20 Total 
6,609 4.930 4,430 3,644 2,499 22,113

 

3. Grants to Local Bodies

 

8. The Commission recommended that local bodies should spend grants only on the basic services within the functions assigned to them. Grant allocation to the local bodies has been determined with 90% weight for 2011 population and 10% weight for the area of the local body.90% of the grant to Panchayats will be basic grant and the remaining 10% will be performance grant. Whereas, the share of peformance grant as a proportin of tol grant for the urban local bodies would be 20%. Performance grant is to be utilised for: i) making available reliable data on local bodies recepits and expenditure through audited accounts; and ii) improving its own accounts.

 

1. Grants to the Local Government of Andhra Pradesh recommended by 14 Finance Commission

1. Panchayats (Basic Grant) 7788.68 Crores
Performance Grant 865.41 Crores
Total : 8654.09 Crores

 

2. Urban Local Bodies (Basic Grant) 2908.64 Crores
Performance Grant 727.16 Crores
Total : 3635.80 Crores

 

4. Disaster Management

9. The Commission recommended that the Union Government should ensure assured source of funding for the National Disaster Response Fund and the State Disaster Response Fund (SDRF). While the Finance Commission recommended the contribution of the State to be 10%, the Central Government differed with the Commission and fixed the State share as 25%.

Total 
Year Centre State Amount
Share Share (Rs.Crores)

2015-16 396 44 440 
2016-17 415 46 462 
2017-18 436 48 485
2018-19 458 51 509 
2019-20 481 53 534

2015-20 2,186 243 2,429
(Five Years)

 

5. Grants to strengthen Judicial System Rs. 261.35 Crores

 

10. The Commission recommended an allocation of Rs 261.35 crores over the five year period to strengthen the judicial system.

 

6. Fiscal Consolidation

 

11. The fiscal deficit targets and annual borrowing limits for the States during the 2015-16 to 2019-2020 period will be anchored to an annual limit of 3 per cent of GSDP. The States will be eligible for flexibility of 0.25 per cent over and above this for any given year for which the borrowing limits are to be fixed if their debt-GSDP ratio is less than or equal to 25 per cent in the preceding year. States will be further eligible for an additional borrowing limit of 0.25 per cent of GSDP in a given year for which the borrowing limits are to be fixed if the interest payments are less than or equal to 10 per cent of the revenue receipts in the preceding year. Thus, a State can have a maximum fiscal deficit-GSDP limit of 3.5 per cent in any given year.

[posaanisam]

7. Other Recommendations

 

12. The Central Government has informed that ‘it will act in due course’ on several valuable recommendations made by the Commission for building Co-operative Federalism, Grants-in-Aid, Goods and Services Tax (GST), Fiscal Consolidation Roadmap, pricing of public utilities, public sector enterprises, public expenditure management.

Impact of 14 FC Award on Andhra Pradesh

 

13. By recommending transfer of 42% of the central divisible pool to the states, an increase of 10% over the previous award, the Fourteenth Finance Commission has gone beyond the tradition set by the previous Commissions that recommended incremental increase of 2 to 3 percentage points. Higher devolution of central taxes will offer greater fiscal space to the States and provide the much required autonomy in designing and implementing their development agenda. The Chairman and the member of the 14th Finance Commission deserve appreciation for their contribution to strengthening the Fiscal Federalism.

 

14. Apart from increased quantum of tax devolution, the Commission has examined both plan and non-plan revenue expenditure while recommending revenue deficit grants, which provides some relief to Andhra Pradesh, with serious resource gap. The Commission has carefully examined the financial situation of the residuary Andhra Pradesh not only during the current year, but also over the next five years and endorsed the contents of the White Paper on State Finances released by the Government of Andhra Pradesh on July 09, 2014, which clearly laid out the disastrous impact of reorganisation on the financial situation of the residuary Andhra Pradesh State.

 

15. While the Finance Commission has recommended an award of Rs 2,06,819.24 crores over the next five year period (2015-16 FY to 2019-2020 FY) to Andhra Pradesh by way of devolutions, revenue deficit grants, grants to local bodies, SDRF, etc., which represents an increase over the 13th FC award, it addresses only the revenue expenditure needs (administration and maintenance costs of governance) of the State rather than the massive development requirements of the new State without a capital city, without the ecosystem for development and without major growth engines.

 

16. By according 10% weightage to 2011 population, the Commission has, to some extent, rewarded those States that have not done enough on population control. This factor, combined with 7.5% weight to forest cover has reduced the entitlement of Andhra Pradesh, though marginally.

 

17. Further, the President of India in Notification No. 1424 (E) dated June 02, 2014, has asked the Commission:

“to take into account the resources available to the successor or reorganised States on reorganisation of the State of Andhra Pradesh in accordance with Section 46 (1) of Andhra Pradesh Reorganisation Act 2014, and the Ministry of Home Affairs notification number SO 655 (E) dated March 04, 2014 and make recommendations, for successor or reorganised States, on the matters under reference in this notification”.

 

18. However, the Finance Commission has not made any specific award for Andhra Pradesh, though it acknowledged that Andhra Pradesh has suffered fiscal damage as a result of reorganisation, and treated Andhra Pradesh State on par with other States, both for the purpose of tax devolutions and revenue deficit grant. The Commission’s estimates clearly indicate that Andhra Pradesh would be the only State in the country, other than the special category States, that would continue to have revenue deficit even in the last year of its award, ie., 2019-2020.

[posaanisam]

19. Moreover, the Finance Commission has not taken into consideration the development challenges of an essentially agrarian State that does not have adequate space for revenue elasticity, without a capital city, without the ecosystem for development and without major growth engines. It has not explicitly acknowledged the handicap suffered by the State as a result of reorganisation. Though the State Government had requested for Rs 1,41,467 crores as grants-in-aid to create a level playing ground and create an ecosystem for catching up with the other States, the Commission has not awarded any grants-in-aid despite the handicap suffered as a result of reorganisation.

 

Role of Government of India

20. Since the Finance Commission has not made any special grants in aid to Andhra Pradesh State considering the serious handicap it has suffered due to reorganisation, it is the responsibility of Government of India to address the development needs of the Andhra Pradesh that has been grievously damaged by the reorganisation.

 

21. The Andhra Pradesh Reorganisation Act 2014 has made explicit provisions in Sections 46 and 94 to provide financial and institutional assistance for sustainable progress and development of the State. On several occasions, the State Government has requested Government of India to create a level playing field for Andhra Pradesh and enable the State to catch up with the national development mainstream. While the State is facing serious resource gap of more than Rs 15,000 crores during the current financial year, the Central Government has sanctioned Rs 500 crores.

 

22. The Finance Commission has very clearly estimated that the Andhra Pradesh State would have a gross revenue deficit of Rs 1,92,798 crores during the next five years, whereas Telangana will have a Rs 21,972 crores surplus prior to the devolution. Even after 42% devolution, Andhra Pradesh would have a net deficit of Rs 22,112 crores over the next five years, whereas Telangana State would have a surplus of Rs 1,18,678 crores over the next five years. Similarly among other South Indian states, Karnataka which would have 20,761 crores deficit prior to devolution, would have a surplus of 1,66,164 crores after devolution. Tamilnadu which would have 76,000 crores deficit prior to devolution will a surplus of 82,000 crores after devolution. Andhra Pradesh would be the only non-special category State that would have a subsisting revenue deficit even in 2019-2020FY.

 

23. Amongst the major eleven States with revenue deficit, Kerala and West Bengal are projected to have a revenue deficit of Rs 2,68,090 crores and 1,03,121 crores over the next five years. However, 42% devolution from the centre based on FC recommendations would ensure they would have a surplus of Rs 18,119 crores and Rs 4,341 crores by 2019-2020 FY. Andhra Pradesh, however, would continue to be deficit even in the last year of the Commission’s award. This clearly illustrates that Andhra Pradesh, despite being 8th largest state in terms of population, would be at the bottom of all most all States in the country during the next five years in terms of fiscal performance.

 

24. Further, the award of the Finance Commission, by devolving 42% of the divisible pool of the central revenues to the States, is likely to disrupt the ongoing central support to the plan schemes. As the Commission member, Prof. Abhijit Sen has observed that “ the increased devolution will be about a third of all current plan transfers from Centre to states and the this will substantially reduce the resources available across various plan schemes and block grants’. Further, eight centrally sponsored schemes (CSS) will be delinked from support by the Centre and different CSS will now see a change in sharing pattern, with states sharing a higher fiscal responsibility. The cumulative centre to state transfers, including the devolutions, central assistance to state plans and other centrally sponsored programmes, during the past five years have averaged around 49% of the central resources. Overall, the dispensation under 14 FC regime is likely to reduce which would have adverse impact on the development dynamics of Andhra Pradesh.

 

 

25. Further, sharing higher fiscal responsibility for the implementation of plan schemes would impose greater financial burden on the State, diverting considerable amounts from the amounts devolved. To such an extent, the freedom of the States to implement their own development agenda based on the local needs may be adversely affected. Above all, Andhra Pradesh is in need of substantial investment for building new capital city, creating essential infrastructure and nurturing an ecosystem for sustainable and inclusive growth. Without proactive and special central assistance, it would be well nigh impossible to create the development momentum essential for catching up with the national mainstream.

 

 

26. It is a sincere hope that the Central Government will take note of the above facts and take comprehensive measures for creating the level playing field for the State of Andhra Pradesh and enable the state to catch up with the national development momentum in the spirit of co-operative federalism.