New Delhi: Among 11 revenue-deficit states, Jammu and Kashmir will get the maximum grant of about Rs 60,000 crore in five-year period ending March 2020, as per the recommendations of 14th Finance Commission which have been “in-principle” accepted by the government.
The 14th Finance Commission recommended a “post devolution revenue deficit grants of total of Rs 1.95 lakh crore (for 11-states), for five year period” beginning April 1 this year.
The Commission, headed by former RBI Governor Y V Reddy, recommended a grants-in-aid of Rs 48,906 crore for 11 revenue deficit states for 2015-16.
The government, Finance Minister Arun Jaitley said, has “in-principle” accepted the recommendation of the Commission in this regard.
As per the recommendations, Himachal Pradesh will get Rs 40,625 crore while Andhra Pradesh will receive Rs 22,113 crore during the five-year period. Nagaland (Rs 18,475 crore) and West Bengal (Rs 11,760 crore) are also among top five beneficiary revenue deficit states.
The other beneficiary revenue deficit states are: Assam, Kerala, Manipur, Meghalaya, Mizoram and Tripura.
The Finance Commission is required to make recommendation regarding the principles governing grants-in-aid of the states' revenues, by the Centre.
The 14th Commission while calculating grants to the states, they have departed from the previous Finance Commissions, “by taking into consideration a States' entire revenue expenditure needs without making a distinction between Plan and Non-Plan”.