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Himachal CM blames centre for reducing revenue deficit grant

Himachal Pradesh Chief Minister Virbhadra Singh on Friday blamed Prime Minister Narendra Modi for reducing revenue deficit grant, seeking to…

Himachal CM blames centre for reducing revenue deficit grant

Himachal Pradesh Chief Minister Virbhadra Singh on Friday blamed Prime Minister Narendra Modi for reducing revenue deficit grant, seeking to compensate for the "losses incurred by the state".

The increase in debt during the recent years was mainly because of the sharp reduction in revenue deficit grant during 2013-14 and 2014-15 coupled with the increased salary burden due to pay scale revision, the Chief Minister informed the assembly.

He said the revenue deficit grant, which was Rs 2,232 crore for the first year (2010-11) of the award period was reduced sharply to Rs 406 crore for the last year (2014-15) of the 13th Finance Commission's award period.

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Replying to the budget discussion, the Chief Minister said there was overestimation in the recommendations of the 13th Finance Commission on account of the share in central taxes for the year 2013-14 and 2014-15.

"Actual receipt during these two years remained Rs 528 crore less as compared to the amount estimated by the 13th Finance Commission. Thus in 2013-14 and 2014-15 the state had to borrow more than three per cent of the Gross State Domestic Product (GSDP), to keep the pace of development in the state," he said.

He said the 14th Finance Commission had also overestimated the tax devolution for 2015-16 and 2016-17. During 2015-16, the state received Rs 3,611 crore as against the estimation of Rs 4,441 crore.

"The tax devolution will be Rs 4,343 crore during the current year 2016-17 as against Rs 4,778 crore estimated by 14th Finance Commission in its recommendations. As such we have received Rs 966 crore less during first two years of the 14th Finance Commission award period."

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