Haryana for increasing state's share to central taxes

New Delhi, Dec 19 (UNI) Haryana government today said there is a need to increase the state's share in the gross proceeds of the central taxes from current 30.5 per cent to at least 50 per cent.

Speaking at the National Development Council (NDC) meeting here, Chief Minister Bhupinder Singh Hooda said the move is imperative as the revenue component of the state plan outlay has gone up to more than 50 per cent as compared to the 30 per cent prescribed by the Planning Commission.

''There is need to revise the ratio of normal central assistance from 70 per cent as loan and 30 per cent as grant to 50:50 to lessen the debt burden of the states,'' Mr Hooda said.

The Chief Minister said the share in Service Tax of all states should be enhanced or the states may be allowed to collect some of the service tax at their own level so as to fully compensate the revenue loss on account of phasing out of CST.

On the crucial power sector, the Minister demanded allocation of eight million standard cubic meter gas supply per day for the proposed 1050 MW gas-based power project at Faridabad.

Besides, NTPC should be asked to set up an additional 432 MW Faridabad gas-based Power Plant (Stage-II). This will alleviate the shortage of power in NCR.

He said the ageing distribution infrastructure needs replacement and such expenditure should be allowed under Rajiv Gandhi Grameen Vidyutikaran Yojana.

Due to the high cost of power, he asked the central government to intervene in the power trading market with a suitable mechanism to ensure that no state or entity earns undue profits.

Also the setting up of nuclear power plant in Karnataka needs to be expedited, he added.

On the irrigation front, Mr Hooda said solutions to the long standing problems of the Sutlej Yamuna Link Canal and construction of storage reservoirs in the uper reaches of Yamuna have to be found during the 11th Plan period.

He urged the centre to suitably amend the eligibility criteria of Rashtriya Krishi Vikas Yojana so that Haryana can qualify in order to accelerate its agriculture growth.

UNI