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Finance secretary Present Government is fully committed to the principle of cooperative federalism both in the letter and spirit; More untied grants are now being given to the States; Allocation to States for local bodies increased from ₹ 87519 crore under 13th Finance Commission to ₹ 2.87 lakh crore under the 14th Finance Commission.

News and Press Release - Dated:- 22-2-2016 - The Finance Secretary, Shri Ratan P. Watal said that the present Government is fully committed to the principle of cooperative federalism both in the letter and spirit. The Finance Secretary was speaking in an interview for the official Youtube Channel of the Ministry of Finance in run-up to the Union Budget 2016-17. In response to a question regarding cooperative federalism, Shri Watal said that the focus of the present Government is unique in the se .....

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s accepted with effect from 2015-16.Shri Watal further added that this has changed the planning exercise and the Centre s interaction with the States for the better. As per its commitment in the current Union Budget 2015-16, the Ministry of Finance had made a provision of ₹ 5.24 lakh crore under devolution of taxes to States as compared to the allocation of ₹ 3.38 lakh crore in 2014-15(RE). So far, ₹ 411681.66 crore (78.56%) has been released to the States by way of tax devolut .....

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ants are being given to the States. The Finance Commission brought about a compositional shift allowing States to set-up their own priorities, Shri Watal added. The Finance Secretary pointed-out that at the same time, the 14th Finance Commission (FFC) also gave awards which increased the amount of money going to elected urban local bodies and rural local bodies. He added that under the 13th Finance Commission, ₹ 87,519 crore has been allocated to States for these local bodies which has bee .....

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f Funds (SDRF) has been increased to address problems of disaster. Against allocation of ₹ 48906 crores for 11 revenue deficit States during 2015-16, ₹ 44,829.62 crore (91.66 %) has been released so far in eleven installments. Similarly, local bodies grants are estimated to be at ₹ 29987 crore in the year 2015-16 as against ₹ 22,399 crore released in 2014-15. In the current year 2015-16, ₹ 21,227.50 crore (70.78 %) has been released to States for the duly constitute .....

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ary grants. In reply to another question, Shri Watal further said that keeping in view the recommendations of FFC, the Government had set-up a Committee through the NITI Aayog consisting of group of State Chief Ministers and headed by the Chief Minister of Madhya Pradesh (MP). This committee came-up with a sharing pattern based on a consensus which shows that cooperative federalism is fully working. According to the Finance Secretary, the aforesaid Committee recommended that the funding pattern .....

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different State Governments, he said that these would be funded on a 50:50 funding pattern. He concluded that there has been a compositional shift but no scheme has been shortchanged. The States are also receiving Central share towards State plan/ Centrally Sponsored Schemes (CSS) under different sectors and programmes. The Budget Estimates for 2015-16 provide ₹ 2,04,110 crores for such transfers in the Union Budget of different Ministries/departments. The total expenditure up to January .....

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is thus greater predictability and certainty now in the quantum of funds flowing to the States apart from the overall increase in untied funds. On being asked about the States fiscal management, Shri Watal said that the State finances are very well managed. He went on to comment that this has been one of the reasons India has recorded a robust growth at the time of global turmoil. He said that there are 8-10 States which are growing at 12 % or more and are touted to be the growth drivers in the .....

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