Central Tax Pool are not distributed properly: N K Singh

Patna, Aug 26 (UNI)Rajya Sabha MP and former Planning Commission member N K Singh today expressed concern over the non-distribution of Central Tax pool among the states, as recommended by the Finance Commission.

Addressing a seminar on ''Growth and Fiscal Prudence:Challenges before the 13th Commission''here, Mr Singh said the recommended 30.5 per cent share of states in Central Tax pool had never been implemented by the Centre. It had also kept out around 1.5 per cent of the GDP from sharable pool on account of central cess and surcharges, Mr Singh added.

''The Centre has been harping on fiscal performance indicators of the state government,while its own fiscal performance had been worsening and hidden under the accounting heads of the contigent liabilities, which is about five per cent of the GDP,'' he opined.

Speaking on the occasion,Bihar Deputy Chief Minister Sushil Kumar Modi said the Union government should also bear the expenses of state governments in the implementation of the Sixth Pay Commission recommendations for its employees.

''Additional burden of Rs 7,000 crore on disbursement of salary as per the Pay Commission recommendation, should be factored in Finance Commission's devolution to the states'', he demanded.

UNI KKS-ABA SB/src2005