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Jaipur, 1 August (HS). In front of the 16th Finance Commission that visited Rajasthan, the state government has placed a demand for 50 percent share in taxes from the central government. The state government said that currently the states get only 41 percent share in taxes from the center. This should be made 50-50 percent in the coming time.
Finance Commission Chairman Arvind Panagariya while talking to journalists on Thursday said that the cash scheme being run by the state and central government for personal benefit has definitely worsened the financial condition of the states. He said that the Rajasthan government has also demanded a change in the standards of sharing between the states in view of the state's geography, area and special circumstances. He said that after the formation of the 16th Finance Commission, the commission is assessing the financial condition of the states after visiting the states and talking to the governments there. The commission will give its recommendations after talking to all the states and the central government. On that basis, the distribution of taxes between the center and the states will be decided in the coming times.
Other members of the commission were also present during the press conference. Earlier, the commission had a meeting with the state government. Chief Minister Bhajanlal Sharma, Deputy Chief Minister Diya Kumari and Premchand Bairwa along with other cabinet members and officials were present in the meeting.
While giving a presentation in front of the commission in the meeting on behalf of the Rajasthan government, it was said that Rajasthan is the largest state in the country in terms of area. But two-thirds of the state is desert. 21 percent of the country's wasteland is in Rajasthan. There is about 1071 kilometers of international border here. Due to low population density in the state, there is more expenditure on infrastructure to provide basic facilities to the people. 75 percent of the population of Rajasthan lives in villages. At the same time, the population of SC-ST here is also 21 percent. Water is a big problem in the state. In such a situation, looking at these special circumstances of Rajasthan, the government has demanded from the Finance Commission that the standards of Rajasthan should also be changed in the share of taxes in the states.
In response to a question, the commission's chairman Arvind Panagariya said that the cash schemes being run by the state and central governments for personal benefits have definitely worsened the financial condition of the states. Such personal benefit schemes have a deep impact on the financial condition of the state and central governments. The commission also has to see that financial stability is maintained in the country. Therefore, we will also consider the impact of such schemes. He said that we have visited four states so far. We have to visit 24 more states. Only after that, something can be said about it.
He said that it cannot be said right now whether we will include it in our recommendations or not. But it is certain that the Finance Commission will definitely assess the impact of such schemes. In the meeting, the state government also presented its financial situation and fiscal deficit before the commission.
The Commission said that the issue of improving the economic situation after Covid will remain in our consideration. During Covid, the Central Government had given a rebate of up to four percent in losses in 2021-22. After that it has been increased to three and a half percent and now three percent. But even now if the states do reforms in electricity, they are given a rebate of half percent. On the demand for special state status to Rajasthan, the Commission said that nothing can be said about it right now.