15th FC will ensure performance is not penalised : Chairman

Speed Post News Network

New Delhi : The Chairman of the 15^th Fiannce Commission (FC) N K Singh while addressing a presser at Kolkata after detailed meeting with West Bengal government reiterated that it will be endeavour of the Finance Commission that performance is not penalised and virtues of efficiency and equity are suitably recognised. This would be a balancing act while addressing its complex Terms of Reference, he added.

The Finance Commission recognizes the significant achievements made by the state government in last few years in terms of key macro economic parameters viz. GSDP, debt management, Own Tax Revenue and innovaitve ways of financing. Significant strides in Human development have been made specially in education and health which will have multiplier benefits for the economy. Adoption of direct tax benefit, e-bill payment has got favourable impact on long term revenue.

The current growth momentum and the new initiatives taken notwithstanding, Singh highlighted the need to consider and examine the legacy issues particularly the huge debt overhang and the need for  structural measures in a manner which does not become a permanent drag on the state economy. The Commission during the detailed deliberation brought out some concerns like low capital expenditure as a percentage of total expenditure. It was assured by the state government  that there has been a substantial enhancement in capital expenditure.

Singh said that the commission has taken a note of the detailed presentation made by the state government. It appreciated the new initiatives taken by the state of West Bengal in the fields of Power Sector, creation of leather hub, a financial hub, more orderly pace of urbanisation, utilising comparative factor advantages which are creating huge employment opportunities. It noted that West Bengal economy is strategically placed bordering Nepal, Bangladesh and Bhutan and is a driver economy for many other economies in the vicinity, according to a PIB release.

West Bengal CM Mamata Bannergy and Finance Minister Dr Amit Mitra welcomed the Commission. In their detailed presentations on state finances, officials emphasised on enhancing the devolution to the states including a criteria of ‘Social Backwardness’ and Locational Complexities like hilly terrain, international border wetlands and population density, continuation of Revenue Deficit grants and state specific fiscal targets, among others.

The Chief Minister submitted a detailed Memorandum to the Commission. The FC Chairman complemented the West Bengal Government for making an illuminating presentation to the commission regarding the opportunities and challenges in all the sectors of the economy of the state. He also stated that the issues raised would receive appropriate consideration during deliberation in the Commission.

The 15th Finance Commission, which is on a 3 day visit to West Bengal, also sought views of the leaders from various political parties, local bodies and representatives from Trade and Industry.