
UP performing on many parameters, demand for higher share in central taxes justified: Khanna
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Lucknow: Days after the chairman of 16th Finance Commission Arvind Panagariya said that Uttar Pradesh, like many other states, had demanded increase in state's share from existing 41% to 50%, state finance minister Suresh Khanna said that such a demand has been raised by other states too and it is justified as UP has being doing better on several parameters.
The UP govt's thrust before the 16th Finance Commission was on UP's share in central taxes which should be 20.47% against 17.93% it got in 15th Finance Commission, the finance minister told TOI.
Sources said that even if UP does not get the demanded share of 20.47%, it should get at least 19.76% of central taxes, which UP got during the 13th Finance Commission between 2010 and 2015.
The meeting, which was also attended by Chief Minister Yogi Adityanath, primarily focused on how much money is required by the state and why.
Talking to TOI on the issue, Khanna said: "The demand is justified as UP has done better on several parameters. UP has fared well in tax effort, which is one of the criteria of the Finance Commission for allocating money. UP has collected over Rs 2.12 lakh crore in state's own tax collection. UP's own tax collection comprises state GST and VAT which stood over Rs 1.14 lakh crore."
On the state's demand to increase UP's share to 20.47% of the central taxes, Khanna said that during the 14th Finance Commission, the tax share stood at 17.95% for UP which came down to 17.93% in 15th Finance Commission.
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Khanna said that UP has done better not only in its own tax revenue but also performed better in financial management and discipline with FRBM limit remaining within the permissible limit of 3%.
Khanna said since UP did not have its own natural resources, its demands were just and acceptable.
He said even under forest index, which is also one of the criteria, the UP govt has planted over 200 crore trees of which over 70% have survived. But the finance commission counts forest covered areas if tree plantation is not done densely. "The demand to keep tree plantation in the forest criteria was also raised before the Finance Commission," Khanna said.
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