Patna, Aug 30 (UNI) West Bengal Finance Minister Asim Dasgupta today demanded that states' share of gross Central revenue should go up to 50 per cent from the current level of 30.5 per cent.
Addressing a consultative meeting on '' Thirteenth Finance Commission:Concerns of the states'' here, Dr Dasgupta said states should be allowed to borrow from the market in accordance with their needs without being subjected to the limitations imposed by the Centre.
'' In early fifties, share of the states and the Centre in total market borrowing was fifty per cent each but with the passage of time, the Centre has come to corner a disproportionate share of 80 per cent in total market borrowings,while the states' share reduced to 20 per cent, '' he maintained.
'' This distortion should be addressed by raising the states' share in market borrowing to at least one third, '' Dr Dasgupta said and pointed out that there was a constitutional violation by introducing conditions in deficit grants of the Finance Commission.
'' The amount forfeited by the states due to such conditions should be restored with interest payment to the states, '' he demanded.
Speaking on the occasion, Bihar Deputy Chief Minister Sushil Kumar Modi, also holding the Finance portfolio, said provision of making contribution by the states to Central Relief Fund(CRF) should be changed.
The states should contribute only ten per cent to CRF instead of 25 per cent as required in the existing provision, he added.
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