Central Grant to the Nine Congress Ruled States

Posted on June 11, 2015, No Comments admin

The Congress Party today had a meeting of the Chief Ministers of the nine Congress ruled States. The Party leadership raised an issue that Congress ruled States have been discriminated against by the Centre. Facts however speak otherwise. The following two charts explicitly make this point. Chart 1 indicates the total tax devolution to the nine Congress ruled States during the period 2010-2015 and the proposed allocation pursuant to Fourteenth Finance Commission for the period 2015-2020. Chart 2 indicates how much the nine States received in the last year of the UPA Government i.e. 2013-14. It also shows the figure after the Fourteenth Finance Commission that each of these States is likely to receive in the year 2015-16. As per the Budget estimates, in addition to the amounts mentioned for the period 2015-16, some of these States may also receive an amount from amongst the Rs.20,000 crores allotted to the NITI Aayog; Rs.15,000 crores surplus available with the Revenue as mentioned in para 55 of the Finance Minister’s Budget Speech. Further amounts would also be allotted to the States for Centrally supported projects of the Railways and the National Highways. A special provision would also be made for Uttarakhand on account of the restoration of the flood affected areas and the Ardh Kumbh.

Chart 1

Chart 2

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