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This is an archive article published on February 24, 2015

Centre’s decision to increase 10% devolution will boost Maharashtra growth: Devendra Fadnavis

Maharashtra has always been in the forefront for last 15 years seeking higher share from central taxes.

Devendra Fadnavis, Govind Pansare Maharashtra Chief Minister Devendra Fadnavis

Maharashtra Chief Minister Devendra Fadnavis on Tuesday said the ten per cent increase in the devolution of central funds will boost the socio-economic growth of the State.

While expressing his gratitude to the Prime Minister Narendra Modi for accepting the 14th finance commission recommendations for greater devolution of divisible pool of resources to the states, he termed it as a big leap forward for state growth.

According to Fadnavis, “The centre’s decision will empower the state on the path of growth. It will set the pace for faster development and usher improvement in the lives of the people.”

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The chief minister believes, “The higher allocations is a pointer to the paradigm shift where growth of state is accorded highest priority both in terms of planning and finances in the Modi government.”

While impetus is given to backward states, the developed states are not neglected, in the planning, he indicated. Arguing, “Or else how does one explain the support of Rs 3,500 crore from the ministry of agriculture to tackle drought.”

In the last 15 years, state Congress-NCP government had always complained about Maharashtra getting a raw deal from the centre. The state chief minister and finance minister for last 15 years have repeatedly voiced their concerns for greater devolution of central funds for development of state.

The average centre’s share for state has not been more than 6 per cent, which was often lamented by the state finance ministers. The former chief minister (Congress) Prithviraj Chavan and former finance minister Jayant Patil had often urged the centre for five cent more devolution of funds through central taxes.

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On several occasions, Jayant Patil (as FM) had even raised the matter for greater devolution of central’s share to state with former prime minister Manmohan Singh in vain.

Maharashtra contributes up to 35 per cent of the funds collected across country through various taxes. However, politicians across party lines had made it a common cause to complain how it received only 6 percent of the share from the centre.

Whether it was Congress, NCP, BJP or Shiv Sena leaders have been unanimously raising the concerns for greater devolution of central funds to state.

However, Congress opposition leader Radhakrishna Vikhe-Patil said, “While we support higher allocation of central share for state, it needs to be seen how much is translated into reality.”

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