Lok Sabha Question No. 2300 (UNSTARRED), answered on 2016-07-29
Subject: Area Specific Grants
Ministry: FINANCE
Asked by: BALABHADRA MAJHI

(a): No, Sir.

- (b): Fourteenth Finance Commission (FFC) has recommended the following grants for its award period 2015-20:

(Rs. in Cr)

| i   | Post-Devolution Revenue Deficit Grant (for 11 States only)   |   194821 |
|-----|--------------------------------------------------------------|----------|
| ii  | Local Bodies                                                 |   287436 |
| iii | Disaster Management                                          |    55097 |
|     | Total                                                        |   537354 |

These grants are released to the State Governments on compliance with conditions as applicable. The details of the grants released to Odisha during 2015-16 and 2016-17 (as on 25.07.2016) are given at Annexure.

(c ): FFC has recommended the increase in the share of tax devolution from 32% to 42% of the divisible  pool  with  the  primary  objective  of  increasing  the  flow  of  unconditional  transfers  of  the States.    Keeping  in  view  the  ecological  benefits  and  the  need  to  support  States  in  shouldering  the responsibility of managing the environment, FFC has considered area covered by forest as one of the important criteria for horizontal devolution. The devolution formula, thus, captures both revenue and cost  disability  and  also  enable  the  States  to  consider  forests  as  a  national  treasure  that  needs  to  be protected.    FFC  in  its  report  has  inter-alia  urged  the  State  Governments  to  use  the  additional  fiscal space provided in the tax devolution to meet the expenditure requirements for  Judiciary, Police and Maintenance.

## LOK SABHA UNSTARRED QUESTION NO. 2300

Answered on Friday, July 29, 2016/Shravana 7, 1938 (Saka)

## AREA SPECIFIC GRANTS

## 2300.  SHRI BALABHADRA MAJHI:

## Will the Minister of FINANCE be pleased to state:

- (a) whether  any  steps  have  been  taken  for  evolution  of  a  new  institutional  arrangement,  as recommended by the 14 th Finance Commission, for identifying the sectors in the State of Odisha that should be eligible for central grants, if so, the details thereof, State/UT-wise including Odisha;
- (b) whether  the  Government  proposes  to  facilitate  early  release  of  specific  purpose  grants determined by the Commission in favour of the State, if so, the details thereof; and
- (c) the  steps  taken  or  proposed  to  be  taken  for  allocation  of  additional  funds  to  State  for  its requirement of 'judiciary', 'police', 'maintenance' and 'forest and environment', etc.?

## ANSWER MINISTER OF STATE FOR FINANCE (SHRI ARJUN RAM MEGHWAL)

## Annexure referred to in reply to part (b) of Lok Sabha Unstarred Question No. 2300 for 29.07.2016 by Sh. Balabhadra Majhi, M.P.

## Details of grants released to Odisha as recommended by Fourteenth Finance Commission(FFC)  :

(Rs. in crore)

Release

|        |                              | 2015-16    | 2015-16   | 2016-17    | 2016-17                    |
|--------|------------------------------|------------|-----------|------------|----------------------------|
| Sl.No. | Grant recommended by FFC     | Allocation | Release   | Allocation | Release (As on 25.07.2016) |
| 1      | Local Bodies grant           | 1125.62    | 1117.96   | 1801.70    | 777.17                     |
| 2      | State Disaster Response Fund | 560.25     | 560.25    | 588.75     | 294.38                     |
|        | Total                        | 1685.87    | 1678.21   | 2390.45    | 1071.55                    |

Note :- Post-Devolution Revenue Deficit Grant has not been recommended for Odisha.