JOIN USFinance Minister Arun Jaitley on Saturday asked the states to focus more on infrastructure development which is holding back India’s economic growth.
The states, in turn, demanded more freedom for fund raising and redressal of the
The states requested the finance minister to release more funds to compensate for the losses suffered on account of Central Sales Tax (CST) pending since 2012-13, in a pre-Budget meeting with Jaitley.
States such as Odisha, Punjab, Uttar Pradesh, Assam, Telangana and West Bengal pitched for compensation of CST losses.
“We request appropriate allocation in the Budget for clearing remaining CST compensation liability of all states for 2012-13 during the current financial year,” said Punjab Finance Minister S Parminder Singh Dhindsa.
Pre-budget consultation
States seek FM to release funds to compensate for CST losses
Centre had decided to phase out CST over a period of four years
States pushed for measures in Budget to boost growth in agriculture sector
The sector has suffered in the past two years due to inadequate monsoon
The government had decided to phase out CST over a period of four years, pending the implementation of GST. Assam and Madhya Pradesh demanded greater autonomy for market borrowing of funds for infrastructure development Gujarat Finance Minister Saurabhbhai Patel urged the Centre for the establishment of Special Notified Zone in Surat for diamond industries in order to give the industry an enhanced competitive edge against other diamond centres of the world.
“This step would undoubtedly prove to further enable in making India the world’s largest rough diamond trading hub as well,” Patel said.
Bihar on the other hand demanded a special category status to help attract private investment and reduce the burden on the state where the government is the predominant engine for development.
States also pushed for more measures in the Budget for boosting growth in agriculture sector which has suffered in the past two years due to inadequate monsoon. Some of the states also demanded that funding pattern of key centrally-sponsored schemes be retained.