National

West Bengal CM Mamata meets Prime Minister Modi

West Bengal CM Mamata meets Prime Minister Modi

West Bengal CM Mamata meets Prime Minister Modi

New Delhi: The Chief Minister of West Bengal, Km. Mamata Banerjee, met the Prime Minister today in Parliament House. Subsequently, a delegation of MPs from the Trinamool Congress along with the Chief Minister met the Prime Minister.

During the meeting, Chief Minister of West Bengal raised the debt problem that the state was facing, most of which was a result of the actions of past governments. This debt burden, leading to high interest payments, was affecting development expenditure in West Bengal. She asked for debt relief and relief from interest payments. She was also concerned about pending releases.

The Prime Minister explained that he is a firm believer in Cooperative Federalism. He has constantly been saying that only strong states can make a strong India and therefore, states must be strengthened to meet development needs of their people.Mamata-Banerjee_32

West Bengal and Kolkata have to develop, for their own sake, and for the benefit of the region. That is why we have the “Act East” policy. The region has talented people and a lot of resources. The Prime Minister stated that he is fully committed for West Bengal`s and Kolkata`s development.

It is with this in view that the Central Government has agreed to devolve 42% of the divisible pool of taxes to states for the next five years. This is unprecedented and a rise from 32% which is the current share. In addition, the Central Government has accepted other recommendations of the 14th Finance Commission relating to Revenue Deficit Grants and other Grants.

Among the large states, West Bengal is one the most important beneficiaries of this decision. The major benefits that come to West Bengal are:

Five Years 2015-2020

a. The tax devolution in the next five years, from 2015-16 to 2019-20 will be around Rs.2,90,000 crore as compared to Rs.1,06,000 crore in the last five years. This is an increase of Rs.1,80,000 crore, i.e., 174%.

b. West Bengal’s share of taxes has been increased from 7.264% to 7.324%.

c. Most importantly, West Bengal is getting a Revenue Deficit Grant of Rs 8,449 crore in 2015-16 and a total Revenue Deficit Grant of Rs 11,760 crore. The only other non-special category states getting this grant are Kerala and Andhra Pradesh. The Revenue Deficit Grant takes into account the interest burden on the state because of debt.

d. Therefore, the total Additional Resources going to West Bengal over the next five years [tax devolution and FC grants] will rise by Rs.2,05,900 crore, an increase of 174% compared to the last five years. They will rise from Rs 1.18 lakh crores to Rs 3.24 lakh crores.

2015-16

e. The tax devolution to West Bengal in 2015-16 will rise by Rs 13,000 crore compared to 2014-15. It was Rs 25,340 crore in 2014-15 and is estimated to be Rs 38,461 crore in 2015-16

f. West Bengal is getting a Revenue Deficit Grant of Rs 8,449 crore in 2015-16. There are also grants to Local Bodies which have almost doubled.

g. If all these transfers are put together, on a year to year basis, the increase in resources to West Bengal will be Rs 22,000 crores in 2015-16 compared to 2014-15, an increase of 80%.

On the problem of debt, the Prime Minister said that you have inherited a large burden. We too have inherited a large burden. The Centre and States have to collectively find a solution to this. In any case, the 14th Finance Commission has taken into account the interest burden on states and has fully compensated the revenue deficit arising as a result of this. This is why West Bengal is getting an additional Revenue Deficit Grant along with only two other non-Special Category States. Therefore, interest burden should not affect development activities any more in future.

The additional financial resources being made available by the Central Government from the current fiscal onwards will substantially improve the position of the State to discharge interest liability and free up funds for developmental activities to boost growth.

The Prime Minister also pointed out that, the Union Government has decided to give West Bengal the royalty on coal and other minerals. This will provide a benefit of Rs 1,600 crore to the state annually. In addition, West Bengal will get Rs 11,200 crore from the coal blocks that have been auctioned so far and there will even more revenue in future.

In this scenario, West Bengal is better placed as compared to the past and has adequate funds to meet its development needs fully.

On the issue of releasing funds under MNREGA, the Prime Minister assured that this scheme is fully provided for. West Bengal has already received Rs 3,744 crores this year and pending claims of Rs 1,500 crore will be settled in March itself.

The Prime Minister said that no stone will be left unturned for the development of West Bengal.

More in National

  • USA vs China military confrontation may become a reality under Trump

    Washington: United States and China are on a collision course. A week into White House, and Donald...

  • AMU school admissions form available for classes I, VI and IX

    NVONews Desk, Aligarh: The Directorate of School Education, Aligarh Muslim University has started the circulation of admission forms for the classes I, VI and IX of the University associated schools. The forms have been uploaded on the University website. While the online submission of application forms will be allowed till 17.2.2017, the...

  • Mahatma Gandhi’s Samadhi gets a make over after 15 years

    NVONews Desk, New Delhi: For more than 10,000 domestic and foreign visitors who visit Mahatma Gandhiji’s Samadhi at Rajghat in the national capital every day, there is nothing much to engage the visitors about his life and and thoughts other than the black stone platform that marks the spot where Gandhiji was...

  • Know who will be the next vice chancellor of AMU?

    NVOnews Desk, ALIGARH: A special meeting of the Executive Council of the Aligarh Muslim University was held...

  • Contribution of first AMU chancellor, Nawab Sultan Jahan Begum, documented

    NVONews Desk Aligarh: Dr Faiza Abbasi’s article titled, ‘Nawab Sultan Jahan Begum: The First Chancellor of the Aligarh Muslim University’ recently featured in the special issue on Indian Women in the University News, New Delhi, organ of the Association of Indian Universities. Dr Abbasi is the Assistant Director of the UGC Human...

  • Jallikattu ban issue – Tamil Nadu Chief Minister calls on PM Modi

    New Delhi: The Chief Minister of Tamil Nadu, Shri O. Paneerselvam, called on the Prime Minister Shri Narendra Modi today. The ban imposed on Jallikattu by the Supreme Court came up for discussion. While appreciating the cultural significance of Jallikattu, the Prime Minister observed that the matter is presently sub-judice. The Centre...

  • Hamid Ansari, India’s Vice President expresses shock over Etah accident

    New Delhi: The Vice President of India, Shri M. Hamid Ansari has expressed his deep distress over the accident in Etah district of Uttar Pradesh today. Following is the text of Vice President’s message: “I am deeply distressed to learn of the accident in Etah district of Uttar Pradesh earlier today that...

  • Chakma migrants discuss their issues with top minister

    Chakma migrants discuss their issues with top minister  New Delhi: A delegation of All India “Chakma” Social Forum called on Union Minister of State (Independent Charge) for Development of North Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances, Pensions, Atomic Energy and Space, Dr Jitendra Singh here yesterday and sought his intervention...