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Wednesday, November 12, 2008

Sikkim CM meets 13th Finance Commission at Gangtok

GANGTOK: Sikkim Chief Minister Pawan Kumar Chamling has asked the 13th finance commission to raise state's grants for development and welfare schemes by taking into consideration the rise in population as per the 2001 census.

Participating in an interactive meeting with visiting members of the finance panel headed by Chairman Vijay L Kelkar on Monday, Chamling urged Sikkim's population as per 2001 census be taken into account for allocation of the central funds to the Himalayan state for implementation of the development and welfare measures.

The commission should also consider granting compensation under special category states in view of Sikkim's very own problems, cost liabilities and low economic base, the chief minister said.

On centrally sponsored schemes (CSSs), he said rigidity in the design and release of funds as well as monitoring process resulted in enormous delays in project implementation and requested the commission for transfer of all schemes to the states with commensurate funds particularly those related to state subjects.

The chief minister sought increase in the share of Sikkim in the central taxes to 40-50 per cent, against the present 30.5 per cent.

Chamling made a veiled criticism of the 12th finance commission by saying that it had reduced the grants for his state by "over-estimating the revenues and under-estimating the expenditure".

Sikkim's Gross Domestic State Product (GDSP) increased over the years since his government came to power in 1994 and the state made rapid strides in development of tourism sector and implementation of the Panchayati Raj system, he said.


The state government has also been taking steps for raising its own revenue for meeting financial needs, he added.

The Additional Chief Secretary (Finance) made a presentation before the commission members, where he demanded a fund of Rs 1,727.29 crore to meet expenditure for administrative requirements, keeping in mind the specific needs of Sikkim.

This will be in addition to appropriate grants for police administration, staff training for better expenditure management, the official said.

In his keynote remarks, Kelkar lauded the state government for preparing a comprehensive memorandum that covered the review of various sectors, the steps taken to improve the quality of public expenditure and the issues placed for the consideration of the commission.

He also expressed satisfaction with the performance of the state on growth and development fronts, especially on literacy and infant mortality rates where performance of the Sikkim is better than the national average.

Kelkar congratulated the state for successfully introducing VAT in 2005, which resulted in doubling of tax collection under VAT-table items since then.

(SOURCE:PTI)

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