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As against share of 6.16% of total tax devolution during 13th Finance Commission award, North Eastern States now get 7.94% of total tax devolution under 14th Finance Commission (FFC) award

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..... As against share of 6.16% of total tax devolution during 13th Finance Commission award, North Eastern States now get 7.94% of total tax devolution under 14th Finance Commission (FFC) award
News and Press Release
Dated:- 24-2-2016

Apart from estimated share in Central Taxes of ₹ 3,13,375 crore during 14th Finance Commission (FFC) award period, FFC also recommends grant-in-aid of .....

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..... ₹ 63,206 crore for North Eastern States. Share of central taxes have increased by 251%, grant-in-aid by about 44% and in overall there is an increase of 183% in untied resources transferred to eight NE States under the recommendations of FC. During 2015-16, ₹ 32,657 crore (i.e.79%) as devolution of taxes, and ₹ 11,433 crore (i.e.89%) as FFC grants have been released to the 8 N .....

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..... orth Esatern States. For speedy development of North-eastern States, a ₹ 740 crore is budgeted this year for schemes approved by North Eastern Council (NEC). For Revenue deficit grants, ₹ 51,137 crore has been recommended to 6 North Eastern States assessed to be in deficit post devolution of central taxes, for local bodies ₹ 8,866 crore and Central share to SDRF ₹ 3,202 c .....

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..... rore. North Eastern and hill States have several unique features that have a bearing on their fiscal resources and expenditure needs and on federal fiscal relations. Taking into account the disabilities arising from constraints unique to each State like low level of economic activity and the consequential low revenue capacity in terms of low tax base, low per capita income; the disability arising .....

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..... from large forest cover and hilly terrain; remoteness and having international borders; infrastructure deficit etc. 14th Finance Commission (FFC) has arrived at expenditure requirements. In fact, apart from estimated share in Central Taxes of ₹ 3,13,375 crore during FFC award period, it has recommended grant-in-aid of ₹ 63,206 crore for NE States. For Revenue deficit grants, ₹ .....

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..... 51,137 crore has been recommended to 6 States assessed to be in deficit post devolution of central taxes, for local bodies ₹ 8,866 crore and Central share to SDRF ₹ 3,202 crore. As against share of 6.16% of total tax devolution during 13th FC award, NE States now get 7.94% of total tax devolution under FFC award. There is greater predictability and certainty now in the quantum of funds .....

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..... flowing to the States apart from the overall increase in untied funds. The transfer of Statutory Resources or untied fund flow to NE States in aggregate have gone up to Rs.54,385 crore in 2015-16, from ₹ 30,072 crore in 2014-15, indicating an increase of 81%. The details are shown in the table below: S. No. State 2013-14 2014-15 2015-16 (BE) Increase over 2014-15 FC Tax Devolu-tion .....

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..... FC Grant Total FC Tax Devolu-tion FC Grant Total FC Tax Devolu-tion FC Grant Total 1 Arunachal Pradesh 1046 763 1809 1110 921 2031 7232 159 7391 5360 264% 2 Assam 11575 508 12082 12284 1130 13414 17401 3283 20684 7270 54% 3 Manipur 1439 1741 3180 1527 1827 3354 3238 2122 5360 2006 60% 4 Meghalaya 1302 883 2185 1382 783 2165 3371 643 4014 1 .....

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..... 849 85% 5 Mizoram 858 1083 1941 911 1055 1966 2414 2166 4580 2614 133% 6 Nagaland 1001 1994 2996 1063 2023 3085 2614 3224 5838 2753 89% 7 Sikkim 763 258 1021 809 515 1325 1925 49 1974 649 49% 8 Tripura 1630 1071 2702 1730 1002 2732 3369 1175 4544 1812 66% Total 19613 8302 27915 20815 9257 30072 41564 12821 54385 24313 81% So far an .....

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..... amount of ₹ 32,657 crore (i.e.79%) as devolution of taxes, and ₹ 11,433 crore (i.e.89%) as FFC grants have been released to these 8 North Eastern States. The States will get 3 more installments of 'tax devolution' during the month of March 2016 and balance of grant-in-aid recommended by FFC. As recommended by the Committee under the Chief Minister, Madhya Pradesh (MP), sharing pattern .....

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..... of CSS for North Eastern States and other Himalayan States has been retained at 90:10 for core schemes and 80:20 for other schemes even though FFC has not made any distinction between special and general category states. For the North Eastern States, an amount of ₹ 18,640 crore (65%) has been released against ₹ 28,546 crore allocation from various line Ministries Budget under CSS/CASP .....

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..... . The special support provided to the North Eastern States for socio-economic, security related expenditure and infrastructural gap funding under NEC, NLCPR and funding provided to Sixth Schedule areas is unique. The North Eastern Council (NEC) gets direct funding from the Union Government. ₹ 740 crore is provided for schemes of NEC during 2015-16. Further, Government of India has provided .....

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..... ₹ 1,000 crore as one time assistance for areas covered under Sixth Schedule in Assam, Meghalaya, Mizoram and Tripura. As such, continued special focus, particularly in terms of social and economic infrastructure with Inter-State significance is being given by the Union Government to this region.
News - Press release - PIB .....

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