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:: Press Releases ::
Friday, June 13, 2014

1. Dr. Y.V. Reddy (Chairman) and Members of the Fourteenth Finance Commission Prof. Abhijit Sen, Ms. Sushama Nath, Dr. M. Govinda Rao and Dr. Sudipto Mundle along with Shri A. N. Jha (Secretary) and other officers visited the State of Chhattisgarh on June 12th -13th, 2014 to hold consultations with the State Government and key stakeholders.

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

3. The Chief Minister in his speech welcomed the Fourteenth Finance Commission and highlighted the following issues and suggestions for the consideration of the Commission while finalizing its recommendations:

a) Despite various initiatives and robust growth since inception, Chhattisgarh continues to lag behind both on HDI indictors and poverty ratio in comparison to other States and needs to brought at par with them;

b) Tax share of the States should be increased to 50% from the present level of 32%;

c) Manmade disasters and losses due to left wing extremism should be considered for funding from NDRF/SDRF;

d) Untied funds in the form of Normal Central Assistance (NCA) has reduced in size over the period even though Plan funding has increased and therefore NCA should be maximized;

e) Population as a criteria for Horizontal devolution should take into account the 2011 census, keeping in view the demographic changes and use per capita consumption expenditure as a criteria in place of per capita GSDP;

f) The grants to local bodies should be enhanced with earmarked devolution for the PESA/Schedule V areas;

g) States should be allowed to borrow sustainably without being subjected to the limit of 3% of GSDP; and

h) State specific grants to the tune of Rs. 33,395 crore was requested from the Finance Commission for the State of Chattisgarh.

4. Detailed presentation highlighting the fiscal situation and performance of the State was made by the ACS, Finance. Other presentations made to the Commission by the State Government related to Status and Requirement of Panchayati Raj Institutions; Requirements of Urban Local Bodies; Presentation on combating Naxalism in Chattisgarh and the Development of new capital city. The presentations highlighted the major issues and needs of the State including the projected requirements of financial support from the Commission.

5. The Commission later interacted with representatives of Political Parties, Panchayati Raj Institutions, Urban Local Bodies and Trade & Industry Associations of the State and had the benefit of their views on various issues relating to the Commission’s work.

6. The Chairman and other Commission Members placed on record their appreciation to the State Government on the high quality of the Memorandum submitted to the Commission and for the cooperation and support extended to the Commission. Chairman assured the State Government that the issues raised as well as the suggestions made to the Commission have been noted and would receive due attention in the deliberations of the Commission. The Commission, it was indicated, also looks forward to continuing interaction with the State Government.

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

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