Govt may revisit norms for spl status for states

Bihar CM Nitish Kumar had urged the centre to provide special category status to Bihar to help it tide over the financial problems

PTI | January 2, 2013



In a move that may provide relief to debt-stressed states like Bihar, the government on Wednesday said the time has come to revisit the criteria for according special category status to states.

"...existing criteria (for according special category status to states) was formulated some time ago. And perhaps it is time to revisit the criteria", Finance Minister P Chidambaram said when asked about his reaction to the demand of special category status by Bihar Chief Minister Nitish Kumar.

During the National Development Council (NDC) meeting last month, Kumar strongly urged the Centre to provide special category status to Bihar to help it tide over the financial problems.

While announcing the formation of the 14th Finance Commission, Chidambaram said, the government has made special reference to the issues concerning debt-stressed states to the panel.

The Commission will also take into account the taxation efforts and the potential for increasing tax-GDP ratio by such states, he said, adding, "all this will help the Finance Commission in making recommendations for states that are far away from the national average".

Among other things, the Commission would be suggesting steps to help states raise additional resources and improve financial position.

The implementation of the proposed Goods and Service Tax (GST) would help in improving tax collection by the states, Chidambaram said, adding the Commission will look into, "the mechanism for compensation in case of any revenue loss".

Besides, he said, the panel will also suggest steps for insulating the pricing of public utility services like drinking water, irrigation, power and public transport from policy fluctuations through statutory provisions.

Comments

 

Other News

70 words that define India, why Doklam stand-off won’t lead to a war, and more

As India celebrates 70 years of freedom, Governance Now looks back and picks 70 words – or phrases, buzzwords, slogans, events – that best define this ancient nation and young democracy. Here, you will find much to be proud of, much tinged with pangs of nostalgia. Then there are entries that

A dose of PPP in healthcare is what the doctor recommends

Dr Kenneth E Thorpe, a professor of health policy and management at Emory University in the US and also the executive director of Partnership to Fight Chronic Diseases (PFCD), says that the government alone cannot do everything. “They don’t have the resources and capacity. So we have to fin

EESL signs MoU with oil companies for energy saving appliances

Energy Efficiency Services Limited (EESL), a joint venture company of PSUs of ministry of power, signed an agreement with oil marketing companies (OMCs) of ministry of petroleum and natural gas for distribution of energy efficient appliances under the flagship Unnat Jeevan by Affordable LEDs and applianc

Jammu airport’s upgraded terminal building inaugurated

Union minister for civil aviation, P Ashok Gajapathi Raju inaugurated the upgraded passenger terminal building of Jammu airport.   Notably, Jammu airport belongs to the Indian Air Force, and airports authority of India (AAI) maintains a civil enclave for civil aircraft operat

Election Commission shows it has spine

The election commission has become increasingly assertive in the past few months, showing its mettle in times of electoral challenges.   Weeks after rooting from EVMs and just days after the poll panel declared votes cast by two rebel Congress legislators in the Rajya Sabha e

Is Amit Shah`s blueprint for 350-plus seats in 2019 Lok Sabha elections achievable?

Is Amit Shah`s blueprint for 350-plus seats in 2019 Lok Sabha elections achievable?



Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter