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President's Address on the eve of 67th Republic Day of India

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AKASHVANI SAMACHAR BHARTI 2015

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FM urges States to increase spending on infrastructure, poverty alleviation schemes

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Finance Minister Arun Jaitley today said the Centre expects states to increase spending on infrastructure and poverty alleviation schemes as the 14th Finance Commission has devolved higher funds to them.

Speaking to reporters after Pre-Budget Consultations with Finance Ministers of States and Union Territories in New Delhi, Mr. Jaitley said the Centre will extend all possible assistance to the States in meeting their challenges.

He said the Centre shares the concern of States for agriculture sector and it is with them for improving the situation in the sector.

Earlier, addressing the State Finance Ministers, Mr. Jaitley said Central government would cooperate with each and every State and Union Territories and adequate importance will be given to them.

He said the national growth would be doubled when the states growth increases.

During the meeting, majority of states demanded the government to release the long pending compensation for phasing out Central Sales Tax (CST) and provide for such funds in the upcoming Budget.

The government had decided to phase out CST over a period of four years with annual reduction at the rate of one per cent as a move towards implementation of Goods and Services Tax and compensate the state governments towards CST loss.

The state Ministers also asked for special assistance to them for meeting additional burden arising out of implementation of 7th Pay Commission in their respective states and raising borrowing limit as per the recommendation of the 14th Finance Commission.

"Mann ki Baat - 16"
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