Patna: Bihar Deputy Chief Minister Sushil Kumar Modi on Thursday said the Budget proposals showed that the share of states and UTs in the central taxes would decline by Rs 7874 crore in 2012-13 and will impinge on their financial health. (Agencies)
It has been projected that Centre's collection of central taxes in 2012-13 will be hit by Rs 68,000 crore and the pinch will be felt by the states and the UTs too as their
share in the central taxes will be reduced by Rs 7874 crore, Modi said.
In all, the total transfer of funds by the Centre to states and the UTs under various heads in 2012-13 will decline by Rs 31,797 crore, Modi noted and said that the reduction in central funds will jolt the financial health of the states and the UTs.
Expressing 'deep disappointment' with the union budget, the Modi, who is also the Finance Minister of the state said that an economically backward and poor state like Bihar has nothing for it in the budget like the railway budget presented two days earlier.
The centre has maintained status quo by allocating Rs 1000 crore in next fiscal to the Eastern region states collectively to push for the second green revolution, while there has been a marginal increased by Rs 140 crores in the grants to the states under the Backward Region Grant Fund (BRGF) at Rs 12,640 crore as against Rs 12,500 crore last fiscal, he said.
He, however, drew some solace from the union budget and said that it was a welcome move by the centre to provision Rs 9000 crores for payment of compensation to the states to compensate them for reduction in the Central Sales Tax rate ahead of the roll out of the Goods and Services Tax (GST).
Modi, who heads the empowered committee on the GST, said the above mentioned amount will meet the states' compensation for reduction of the central sales tax tate for the fiscal year 2010-11 and that similar provision should be made for the fiscal years 2011-12 and 2012-13 too.
Patna: Bihar Deputy Chief Minister Sushil Kumar Modi on Thursday said the Budget proposals showed that the share of states and UTs in the central taxes would decline by Rs 7874 crore in 2012-13 and will impinge on their financial health.