Lok Sabha Question No. 1328 (UNSTARRED), answered on 2017-12-22
Subject: Stoppage of Funds to District Council/ Block Committees
Ministry: FINANCE
Asked by: VISHNU DAYAL RAM

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF ECONOMIC AFFAIRS LOK SABHA

## UNSTARRED QUESTION NO. 1328 TO BE ANSWERED ON FRIDAY December; '2017 [1 Pausha, 1939 (SAKA)] 22nd

'Stoppage of Funds to District Council Block Committees'

## No. 1328, SHRI VISHNU DAYAL RAM

Will the MINISTER' OF FINANCE be pleased to state:

- (a) whether the States have been benefited due to the increase in the tax sbare of States and if s0, the details thereof; StatelUT-wise;
- the details of the benefits extended to Jbarkhand and other States in the country, StatelUT-wise; and
- c) whether as per the report of the 144 Finance Commission, the funds provided to District Council Members/Block Developments Committee Members have been stopped and if $0, the details thereof along with the reasons therefor?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PON. RADHAKRISHNAN)

- (a) upon tbe acceptance of the recommendations of Fourteenth Finance Commission (FFC) for the increase in the tax share of States from 32% to 42%, the tax devolution to States, including Jharkhand, has increased from ? 337808.45 crore in 2014-15 (i.e. terminal year of Finance Commission award period) to ? 506192.96 crore and ? 608000.31 crore in respective years of 2015-16 ad 2016-17 (i.e. first ad second year of FFC award period): Union Territories (UTs) do not fall within the purview of Finance Commission and tax devolution is not devolved to the Union Territories. The State-wise, year-wise detailg for the period from 2014-15, 2015-16 and 201617 are enclosed as Annex ~A.
- (c) 14t Finance Commission vide para 9.109 stated that; *Areas under Schedule VI in Meghalaya, Mizoram Tripura ad Assam, the areas in the hill districts of Manipur, rural areas of Nagaland ad Mizoram will remain outside the ambit of the measures we have recommended for panchayats and municipalities However; the Commission vide para 9.110 recommended that; We urge the Union Goverment to consider a larger, sustained and more effective direct intervention for the upgradation of administration as well as development of the areas covered under the proviso to Article 275(1) and excluded from the consideration of Finance Commissions in the Terms of Reference (ToRs); in order to bring such areas on par with other areas In the backdrop of this recommendation, the Govt  of India sanctioned 'One Time Assistance' of ? 1000 crore during 2015-16 to Areas covered under:-Sixth Schedule of the Constitution falling in States of Assam, Meghalaya, Mizoram and Tripura. Further; during 2017-18, < 500 crore has been released to all the areas excluded from the purview of the 14* Finance Commission:

Annex-A Statement showing year-wise releases of States' Share of Union Taxes and Duties

in crore)

## made to the State Governments

|    | State             | 2014-15   | 2015-16   | 2016-17   |
|----|-------------------|-----------|-----------|-----------|
|    |                   | Actual    | Actual    | Actual    |
|    | Andhra Pradesh    | 13692.42  | 21893.79  | 26263.88] |
| 2  | Arunachal Pradesh | 1109.98   | 7075.58   |           |
| 3  | Assam             | 12283.71  | 16784.88  | 20188.64  |
| 4  | Bihar             | 36963.07  | 48922.68  | 58880.59  |
| 5  | Chhattisgarh      | 8363.03   | 15716.47  | 18809.16  |
| 6  | Goa               | 900.54    |           | 2299.20   |
|    | Gujarat           | 10296.35  | 15690.43  | 18835.39  |
|    | Haryana           | 3548.09   | 5496.22   | 6597.47   |
| 9  | Himachal Pradesh  | 2644.17   | 3611.17   | 4343.70_  |
| 10 | Jammu & Kashmir   | 4477.23   | 7813.48   | 9488.60   |
| 11 | Jharkhand         | 9487.01   | 15968.75] | 19141.92  |
| 12 | Karnataka         | 1465425   | 23983.34  | 28759.94  |
| 13 | Kerala            | 7926.29   | 12690.67  | 15225.02  |
| 14 |                   |           | 38397.84  | 46064.10- |
| 15 | Maharashtra       | 17602.97  | 28105.95] | 33714.90  |
| 16 | Manipur           | 1526.95   | 3142.42   |           |
| 17 | Meghalaya         | 1381.69   | 3276.46   | 3911.05   |
| 18 | Mizoram           | 910.67    | 2348.11   | 2800.63   |
| 19 | Nagaland          | 1062.69   | 2540.72   |           |
| 20 | Odisha            | 16181.21  | 23573.75] | 28321.49  |
| 21 | Punjab            | 4702.97   | 8008.90   | 9599.73   |
|    | Rajasthan         | 19817.14  | 27915.93  | 33555.88] |
| 23 | Sikkim            | 809.33    | 1870.28   | 2233.30   |
| 24 | Tamil Nadu        | 16824.03  | 20353.86  | 24537.76  |
| 25 | Telangana         | 9795.40   | 12350.72  | 14876.61  |
| 26 | Tripura           | 1730.13   | 3266.02   | 3909.12   |
| 27 | Uttar Pradesh     | 68622.91  | 90973.68  | 109427.48 |
| 28 | Uttarakhand       | 3792.30   | 5333.19   | 6411.57   |
| 29 | West Bengal       | 24594.93  | 37163.93] | 44625.16  |
|    | TOTAL             | 337808.45 | 506192.96 | 608000.31 |