Bhubaneshwar: The Odisha government today submitted a memorandum to the 14th Finance Commission and demanded about Rs 4.6 lakh crore for the 2015-2020 period besides urging the panel to modify the sharing pattern of SDRF between the Centre and the state, official sources said.
Besides seeking Rs 4,59,839.80 crore, the state government made a detailed presentation on the state's finance, its projection for the award period and gave its views on the terms and reference of the commission, they said.
During the presentation, it also highlighted the macro economic situation, achievements of the state, plan priorities and need to increase the capital expenditure especially in the area of infrastructure.
A separate presentation was also made on disaster management, wherein the state stressed the need for immediate release of relief funds from the centre and also the need to increase the size of SDRF.
The commission, headed by chairman V V Reddy, also interacted with representatives of political parties, PRIs, ULBS, Trade and Industry Associations. The commission visited sea erosion sites and Wetland Research Centre at Chandraput, Balugaon. Another team visited Chilika Development Authority.
Chief Minister Naveen Patnaik who met the commission demanded an increase in the state's share from central revenue from 32 to 50 per cent.
"The past trend growth rate should not be the basis for assessment of revenues and expenditure needs as these underestimate the expenditure requirement of relatively poorer state," he said.
The chief minister also drew attention of the Finance Commission on the windfall profit being made by mine owners, saying "the states should get benefit by imposing mineral resource rent tax".
The state government in its memorandum suggested that fiscal discipline may be given a weightage of 20 per cent in order to balance of the overall approach of equity with efficiency, it said adding the area factor as suggested by the Government should be defined as scheduled area plus the low population density with a weight of 10 per cent.
As tax devolutions are contingent upon actual central tax collection, a guaranteed floor level of tax devolution of at least 90 per cent of the projected amount may be prescribed by the commission.
The state government also argued that the conditions attached to specific grants should be kept to the minimum so that state can avail these grants easily. It suggested that in order to augment the consolidated fund of the state to supplement the resources of the local bodies, the existing share of central taxes should be increased to 5 per cent.
As the state is frequented by natural disasters, Odisha government in its memorandum sought support for disaster relief and suggested that while deciding the size of State Disaster Response Fund (SDRF), the releases made from National Disaster Response Fund and expenditure from states' own resources need be taken into account.
SDRF should be shared by the Centre and State in the ratio of 90:10, it said.
The Commission which is scheduled to finalise its recommendations by October 2014, was requested to make specific recommendations in different heads like assistance to panchayati raj institutions, urban local bodies, scheduled area development, education, development of anganwadi centres, improvement of judicial, prison, police infrastructures besides development of Naxal affected areas.
