M A I N   N E W S

Let SC population determine funds for states: Punjab
Ashok Tuteja/TNS

New Delhi, October 22
Punjab Chief Minister Parkash Singh Badal today asked the Centre to amend the Gadgil/Mukherjee formula for disbursement of funds to states and waive off the state’s Rs 23,146 crore loan.

Haryana Chief Minister Bhupinder Singh Hooda, meanwhile, talked about imbalances between the Centre and states in the allocation of central assistance. Fiscally well-managed states, he said, should be rewarded by giving higher weightage to fiscal management, revenue generation and tax collection efficiency.

In his speech read out at the National Development Council (NDC) meet by Punjab Finance Minister Upinderjit Kaur, Badal said: “The disbursement of funds to states should be done on the basis of their Scheduled Caste population and contribution of foodgrain to the national pool by them.” Under the Gadgil/Mukherjee formula, population, per capita income, performance and special problems are the four criteria used for disbursement of funds to states.

“The 60 per cent weightage of population (under the Gadgil/Mukherjee formula) should be split up into total population (40 per cent) and SC population (20 per cent)... The weightage of 25 per cent for per capita income should be reduced to 15 per cent and the weightage of performance should be increased to 17.5 per cent with 10 per cent weightage to the contribution of foodgrains to the national pool," Badal said.

Claiming that the lack of resources and inadequate support from the Centre had compelled the state government to resort to heavy borrowings, which had accumulated to Rs 69,594 crore by the end of March 2011, Badal pointed out that the share of Punjab from central taxes had come down from 2.45 per cent, recommended by the fifth Finance Commission, to 1.39 per cent as recommended by the 13th Finance Commission.