GUWAHATI, June 12 ? Assam Chief Minister, Tarun Gogoi today urged the Centre to compensate the ?huge disparity?, between the estimates of the Tenth and Eleventh Finance Commissions in respect of shares of central taxes and the actual receipts, reports PTI. Participating in a meeting of the empowered committee of the State Finance Ministers, Gogoi, who holds the Finance portfolio, said in New Delhi there was a shortfall of Rs 675.73 crore in central tax devolution against what projected by the Tenth Finance Commission.
There was also significant shortfalls in Central tax devolutions amounting to Rs 92.94 crore and Rs 339.56 crore in the years 2000-2001 and 2001-2002 respectively, he said. These shortfalls in Central tax receipts had worsened the financial crisis of the State Government, Gogoi said, and urged the Centre to compensate the difference. The Chief Minister said the financial crisis was serious as expenditire on salaries and pension increased from Rs 2436 crore in 1997-98 to about Rs 4836 crore in 2001-2002 for which the Government had moved for financial assistance from the Centre but the Eleventh Finance Commission did not consider it.
To ease the financial crisis, Gogoi also urged the Centre to grant a moratorium on repayment of Central loans for ten years or grant special Central assistance to overcome the chronic problem of overdrafts. The Chief Minister said that the State of Assam has been taking necessary steps for introduction of VAT with reflect from April 1, 2003. In this connection, Gogoi said owing to financial constraint, the State Government is not in a position to bear the cost of computerisation, publicity and training and thus sought substantial financial assistance for the purpose. He also suggested that the Government of India provide full financial and technical assistance to the NE States and also lay down a road map so that all the NE States can march together in their efforts to introduce VAT. Further, the Chief Minister said, since all the State Governments in NE region are offering sales tax incentives to industrial units, it would be advisable for all the NE States to take a collective decision. As such, Gogoi requested the chairman of the empowered committee to convene a meeting of Finance Ministers of NE states soon. The Chief Minister was also accompanied by Nilamoni Sen Deka, Minister of State for Finance.
The meeting chaired by Asim Dasgupta, Finance Minister of West Bengal and Chairman of the Empowered Committee was also attended by Union Minister of Finance Yaswant Sinha, Finance Ministers of different States and senior officials of Central and State Governments.