State Governments Demand Fair Share in Tax Revenues

Shiv Sena's Priyanka Chaturvedi urges state share in central cess/surcharge collections, highlighting increased revenue proportion and budget discrimination against Maharashtra. Citing the 15th Finance Commission's concerns, she advocates for state justice through restrictions or inclusion in state bills.

In a recent debate on the Finance Bill in the Rajya Sabha, Shiv Sena member Priyanka Chaturvedi demanded that state governments receive a portion of the cess and surcharges collected by the Central Government. She highlighted an alarming increase in the share of these collections, which escalated from 6 percent to 14.5 percent of gross tax revenue.

Chaturvedi emphasized that this revenue does not form part of the divisible pool allocated to states, echoing concerns raised by the 15th Finance Commission. She called for justice for all states, advocating for either restriction, rationalization, or the abolishment of such cess and surcharges unless they are made part of state bills.

Priyanka Chaturvedi pointed out how budget priorities bypass Maharashtra, noting the disproportionate return on tax collection and severe issues like farmer suicides and high unemployment in the state. The debate saw wide support for equitable fund devolution among states, with calls for the upcoming 16th Finance Commission to ensure balanced development by 2047.

(With inputs from agencies.)