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:: Press Releases ::
 
FINANCE COMMISSION VISITS MADHYA PRADESH
Monday, February 17, 2014
 

1. Dr. Y.V. Reddy, Chairman, Prof. Abhijit Sen, Ms. Sushama Nath, Dr. M. Govinda Rao and Dr. Sudipto Mundle, Members of the Fourteenth Finance Commission and Sh. A.N. Jha, Secretary visited the State of Madhya Pradesh between February, 16 & 17, 2014 to hold consultations with the State Government and key stake holders.

2. The Commission met with the Hon’ble Chief Minister, his Cabinet Colleagues and senior officers of the State Government, for discussions.

3. The Chief Minister Madhya Pradesh welcomed the Chairman and Members to Madhya Pradesh and stated that for vertical devolution at least 50% of the divisible pool of the central taxes should be devolved to the States. For horizontal distribution amongst States, he suggested that 2011 population may be assigned a weight of 20%, geographical area – 20%, forest area – 10%, underdevelopment index – 10%, fiscal discipline – 5% and fiscal capacity distance – 45%. The SDRF should be funded entirely by the Centre or else shared with the State in the ratio of 90:10 and the size of the fund may be increased by 25% on an annual basis. He requested that transfers Local Bodies may be continue with the devolution formula devised by the 13th Finance Commission.

4. The State Government submitted their Memorandum and finance department made a detailed presentation on the finances of the State Government, its projection for the award period and gave their views on some of the Terms of Reference of the Commission. Presentations were also made by various other departments highlighting the achievements of the State and expectations from the Finance Commission. The Commission also interacted with representatives of Political Parties, Panchayati Raj Institutions, Urban Local Bodies and Trade and Industry Associations.

5. The Commission places on record its appreciation to the Chief Minister and State Government for the cooperation and support extended to the Commission and assures that the issues raised will receive due attention in the deliberation of the Commission. The Commission also looks forward to continuing interaction with the State Government.

6. The Commission will finalize its recommendations by October 2014 after completing its discussions with all the State Governments, the Government of India and relevant stake holders.

 
FOURTEENTH FINANCE COMMISSION,B-14/A, CHATRAPATI SHIVAJI BHAVAN, QUTAB INSTITUTIONAL AREA, NEAR KATWARIA SARAI, NEW DELHI-110016
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