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This is an archive article published on February 5, 2024

Politically vitiated: FM Nirmala Sitharaman on claims Govt not releasing funds to non-BJP ruled states

Sitharaman said that the devolution of taxes was based on the recommendations of the Finance Commission and she had no discretionary powers.

sitharamanUnion Finance Minister Nirmala Sitharaman during the Parliament Budget session on February 5, 2024. (Photo: Screengrab from Sansad TV)

Replying to a question from Congress member Adhir Ranjan Chowdhury in the Lok Sabha, Union Finance Minister Nirmala Sitharaman Monday strongly refuted claims that the Centre was withholding funds to non-BJP ruled states.

Sitharaman said that the devolution of taxes was based on the recommendations of the Finance Commission and she had no discretionary powers.

“This apprehension that some states are being discriminated against is a politically-vitiated narrative which, I am sorry to say, vested interests are happy to go about saying,” she said.

Citing Karnataka, Chowdhury said “an entire ministry has been agitating against the indiscriminate and arbitrary attitude of your administration”. There is a “perception” that non-BJP ruled states were being deprived of their legitimate dues, he said.

In her reply, Sitharaman said 100% of the state GST is transferred automatically to the states and roughly 50% of the integrated GST is shared with the states that is periodically readjusted to actuals. “If a state has to get 41%, it will be re-adjusted. If the state is to get 52% it is readjusted. The CGST is divided as per the advice of the Finance Commission,” she said.

“I want to submit… Adhirji please understand, I don’t have the right to change as per my whims and fancies… No way. I have no role,” she said, adding, “Till six months ago …it was hunky dory and now it’s not. Introspect, please… When the Finance Commission comes, please tell your needs, your requirements, your status and let them fix it.”

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