Major reduction in state’s share of central taxes, shortfall of 17.81% in April-May

ITANAGAR, Jun 5: There has been a reduction of Rs 2583.53 crore (22.40 percent) in Arunachal’s share of central taxes in the 2019-20 financial year.
The estimated fund receipt was Rs 11571.10 crore as share of central taxes in BE 2019-20 of the union government. However, the actual release as per RE stands at Rs 8987.57 crore.
The figures were released by the chief minister’s office after Chief Minister Pema Khandu convened an all-party legislators’ meeting on Friday evening to discuss the financial status of the state government in the wake of the Covid-19-triggered constraints and restraints.
It added that there has been a shortfall of 17.81 percent in actual receipt of central share of taxes. The actual receipt for the months of April and May 2020 was Rs 1620.56 crore @ Rs 810.28 crore per month, whereas the share of central taxes expected per month is Rs 985.83 crore.
The projected share of central taxes as per the union government’s BE 2020-21 is Rs 13801.59 crore.
If the current trend continues, it would lead to an overall shortfall of Rs 2457.67 crore.
“The allocation under plan activities was affected as a result of this reduced devolution in the share of central taxes. In order to have continued plan development in the state, all the approved schemes which could not be funded in the last fiscal have been carried forward to 2020-21 and provision for the same has been budgeted accordingly.
“The priority of the state government during CFY is to complete all the ongoing schemes as well as focus on centrally-sponsored schemes,” it said.
It further stated that during the FFC period of 2014-2019, there had been an overall shortfall of 18.40 percent in the release of the state share of central taxes vis-à-vis the recommendations of the 14th Finance Commission.
However, the state government is committed to providing funds for normal requirements like salary, pension, wages and other priority sectors, including generation of employment activities through agri-horti and MSME and other rural livelihoods activities, it said.
The state government has sought cooperation from all sections of the society in order to pass through this difficult phase.
The meeting was attended by Deputy Chief Minister Chowna Mein, Home Minister Bamang Felix, Education Minister Taba Tedir, Health Minister Alo Libang and others of the BJP, the INC (led by its state president and former CM Nabam Tuki), and legislators of the NPP and the JD (U). (See details here)