Madhya Pradesh Finance minister Tarun Bhanot here on Wednesday alleged that Centre’s tax contribution to States was shrinking in last few years and this was primarily because of the botched up implementation of the GST.
After presenting the budget in MP assembly Bhanot while speaking to the media was asked whether the state government was unable to present accounts of allocation and expenses which led to lesser distribution of funds to states in last few years, the minister replied in negative.
“Recently Finance Ministers of various states had called on union Finance minister Nirmala Sitharaman in New Delhi and not only MP, most of the states complained about dwindling tax contribution from the Centre,” claimed the minister.
Asked to explain why this was happening, the minister replied that it was all because of Centre’s faulty implementation of GST which led to revenue downfall in last few years and states tax share also diminished accordingly.
The minister said the reason behind imposition of cess on petrol and diesel was less budget allocated to MP by the Centre.
Replying to a query whether Rs 8,000 cr additional allocation of funds for farm loan waiver would be sufficient, the minister retorted saying who said this allocation was all the state government has provisioned besides earlier Rs 5,000 cr allocation.
“We will arrange funds as and when needed.”
When pointed out that he was talking about dwindling tax share from the Centre and still the budget provisioned an increase of around 18 to 20% in tax revenue generation, the minister said the State Government was eyeing to restructure tax collection in sectors including transport, mining and excise.
“In renewal of bar licences, we have raised the fee from 15 to 20% and altered sand mining auction by introducing online auctions,” said the minister.
Referring to the economic survey of MP which has put MP on 27th spot among 29 states in poverty, the FM lashed at previous BJP government saying they used to claim that they took the state out of BIMARU list.
He lashed at the BJP saying it’s are the figures of Neeti Ayog governed by their own government.
The minister lashed at the previous BJP state government saying loans were taken unnecessarily especially after year 2012.
This was also pointed out by the members of Finance Commission which visited MP recently.
“Kharcha Khoob Hua par BIMARU banakar chhora, (They spent lavishly but left the state as BIMARU state,” he added.
When asked to specify whether he meant that MP has become BIMARU, an irritated minister said he has said what he had to.
Also present on the occasion, PR minister PC Sharma accepted that BJP has left the state in BIMARU form but they would transform it shortly.
Source- Daily Pioneer.