Rajasthan is going through a complicated financial situation due to the adverse circumstances of COVID-19 and a drop in revenues along with increasing state share in centrally sponsored schemes, non-payment of GST compensation by the Center and transfer of funds that is lower than what is estimated under the 15th Finance Commission, Chief Minister Ashok Gehlot said Thursday.
However, despite the challenging situation, the state government is accelerating projects in education, health care, infrastructure, electricity and other sectors with economic reforms and efficient management of resources, he added.
During the second meeting of the Chief Minister’s Economic Reform Council via video conference here, Mr Gehlot said Rajasthan is one of the few states in the country that has increased its spending to boost the economy despite a massive drop in the income .
In addition, he said, efforts have been made to implement the announcements in the state budget and the state’s medical infrastructure has been strengthened.
Mr Gehlot said the next state budget will be spent on the agricultural sector.
He said the 15th Financial Commission had estimated in its interim report that Rs 50,000 crore would be given to Rajasthan from the divisible pool for the 2020-21 fiscal year, but the actual transfer amounted to about Rs 32,000 crore.
Likewise, the Center is not giving full payment of GST compensation, according to a state government release.
“In several projects, including water, the ratio of the Center to the state was previously 90:10, which has now fallen to 50:50. The states’ share of the shareable pool of taxes on gasoline and diesel is also constantly being reduced. the Prime Minister quoted.
He said an immediate solution to these problems is necessary, otherwise there will be a negative effect on the development of states.
The experienced congress leader said that the geographical conditions of Rajasthan are quite complex and in such a situation, the cost of services is much higher compared to other states.
“In view of this, Rajasthan should be given special status, but the Center has not yet taken a positive step in this direction,” he added.
Education Minister Govind Singh Dotasra, Energy Minister BD Kalla, Chief Secretary Niranjan Arya and members of the council attended the meeting.
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