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regular-article-logo Friday, 27 December 2024

Bengal government to collate central dues for equal share of taxes raised by Centre from states

Members of 16th finance commission held a meeting with state government and political parties at Nabanna on December 3 where Mamata raised the issue of Centre’s denial of funds

Pranesh Sarkar Calcutta Published 07.12.24, 06:23 AM
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The Mamata Banerjee dispensation has decided to prepare a detailed list of central schemes under which the Union government did not release funds for Bengal in the past few years in an apparent bid to strengthen the state’s claim for an equal share of taxes raised by the Centre from states.

“All departments have been asked to furnish details of arrears under schemes sponsored by the Centre up to March 31, 2024. The departments can also furnish further dues during 2024-25, if any. The comprehensive list will be submitted to the 16th finance commission to strengthen our claim for 50 per cent of the taxes collected by the Centre from states,” said a source at Nabanna.

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Sources said the initiative to prepare a detailed report on the dues was taken after chief minister Mamata Banerjee demanded during a meeting with representatives of the 16th finance commission that the states get 50 per cent of the Centre’s divisible tax pool, instead of the existing 41 per cent. Mamata also told the representatives that the Union government deprived states like Bengal by not releasing funds under the
central schemes.

The members of the 16th finance commission held a meeting with the state government and political parties at Nabanna on December 3 where Mamata raised the issue of the Centre’s denial of funds.

“The chairman of the 16th finance commission, Arvind Panagariya, had reacted to the issue raised by the chief minister during the meeting saying issues like difficulty in getting funds under central schemes were not under their mandate. But the state wants to send a detailed report on the Centre’s denial of funds to the 16th finance commission only to make it clear why the state wants a higher share of taxes raised by the Centre from the state,” said a senior official.

Members of the 16th finance commission — which was formed to determine the sharing of tax between the Centre and the states for five years starting from
April 1, 2026 — are likely to submit their reports by October 31, 2025.

Senior Bengal government officials said the state was being deprived of funds under central schemes like those to ensure 100 days of jobs for villagers and build roads and homes in rural areas in the past three years. Moreover, the Centre did not release funds to Bengal to help victims of natural disasters like cyclones Amphan, Fani and Dana.

“The chief minister said during the meeting with the members of the 16th finance commission that the state was deprived of 1.7 lakh crore by Delhi under various schemes. Now, we want to update the figure and check whether the figure has gone up since it was calculated a few months ago before sending it to the 16th finance commission,” said another official.

Sources said updating the list of schemes under which the state did not get funds could be a weapon for the ruling establishment in Bengal in many ways.

First, it would put the BJP-led Centre under pressure as top BJP leaders would have to explain why the state was deprived ahead of the 2026 Assembly polls.

Second, a message would be sent to the common voters in Bengal that the state was running several development schemes on its own even after the Centre halted the release of funds.

“Importantly, if the pressure forces Delhi to release some of the funds, it would be beneficial for the state as it has plans to release the first instalment of 60,000 each to nearly 12 lakh people under the rural housing scheme in the last week of December. If the Centre releases its share of 8,200 crore under the scheme, it would give the cash-strapped state coffers a relief,” said a bureaucrat.

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