Shimla (Himachal Pradesh) [India], Chairman of the 16th Finance Commission of India, Arvind Panagariya, said that the Commission cannot examine the participation of a state in isolation. The President addressed the media in Shimla on Monday.
Responding to media questions on a green bond for Himachal Pradesh in the special category, he said Himachal's participation cannot be seen in isolation.
"Himachal Pradesh's involvement cannot be considered in isolation. There are 28 states in the country. It is definitely within the purview of the Commission," said Arvind Panagariya, chairman of the 16th Finance Commission of India.
He further added: "It is too early during the tenure of the 16th Finance Commission to say anything as this is a very big task which over five years involves making recommendations on, firstly, that the total tax revenue of the central government will be divided between the central government and the states and then how the shares of the states as a whole will be divided between the states."
The green bond is compensation from the central government for "environmental services" provided by the state.
The President also mentioned that the state government gave a detailed presentation of 90 slides, which lasted three hours. He said the meetings with the state government were cordial.
The 16th Finance Commission team is in Shimla on its three-day visit and Himachal Pradesh is the first state where the Commission has started its consultative visit.
During the meeting, the state government also expressed its concerns and raised issues with the hope of including Himachal Pradesh in a special category status. State Chief Minister Sukhvinder Singh Sukhu demanded that the state be included in the special category.
He said: "Hill states should be given special consideration with 41 per cent share of taxes. We have higher construction cost; plain parameters will not apply in hills. We have kept our vision serious, we hope "The finance commission over the next one and a half years, with its recommendations, will consider our demands. We have also said that in case of disaster the NDRF and SDRF parameters cannot be like in flat areas, we have different disaster situations."
Responding to media questions on a green bond for Himachal Pradesh in the special category, he said Himachal's participation cannot be seen in isolation.
"Himachal Pradesh's involvement cannot be considered in isolation. There are 28 states in the country. It is definitely within the purview of the Commission," said Arvind Panagariya, chairman of the 16th Finance Commission of India.
He further added: "It is too early during the tenure of the 16th Finance Commission to say anything as this is a very big task which over five years involves making recommendations on, firstly, that the total tax revenue of the central government will be divided between the central government and the states and then how the shares of the states as a whole will be divided between the states."
The green bond is compensation from the central government for "environmental services" provided by the state.
The President also mentioned that the state government gave a detailed presentation of 90 slides, which lasted three hours. He said the meetings with the state government were cordial.
The 16th Finance Commission team is in Shimla on its three-day visit and Himachal Pradesh is the first state where the Commission has started its consultative visit.
During the meeting, the state government also expressed its concerns and raised issues with the hope of including Himachal Pradesh in a special category status. State Chief Minister Sukhvinder Singh Sukhu demanded that the state be included in the special category.
He said: "Hill states should be given special consideration with 41 per cent share of taxes. We have higher construction cost; plain parameters will not apply in hills. We have kept our vision serious, we hope "The finance commission over the next one and a half years, with its recommendations, will consider our demands. We have also said that in case of disaster the NDRF and SDRF parameters cannot be like in flat areas, we have different disaster situations."
