Odisha Finance Minister Shashi Bhushan Behera has urged the Union Government to change the sharing pattern of the State Disaster Response Fund (SDRF) between the Centre and the State from 75:25 to 90:10 as per the recommendations of 14th Finance Commission.
Behera placed this demand and many others at the pre-Budget consultation meeting held at New Delhi under chairmanship of Union Finance Minister Arun Jaitley on Thursday.
Stating that availability of bank credit without collateral and third party guarantees would go a long way in providing access to long term credit for the farmers for capital investment as well as working capital to set up enterprises in the agriculture and allied sectors, Behera said the Centre should set up a separate credit guarantee trust fund preferably under the Nabard to facilitate smooth flow of long term credit to the prospective borrowers in the farm sector.
He requested to review the recent change in the date for tax devolution to States to 15th of every month instead of 1st of month as the change would adversely affect the finances of the States for a major proportion of expenditure on account of salary and pension is incurred in the 1st week of the month.
He suggested that there should be an advance indication about the annual allocation of Central assistance for each State at the time of Budget formulation so that the States would be able to prepare their budgets on a realistic basis.
“The release of funds must also match the allocation as inadequate flow of funds in the schemes such as NRDWP, SSA, Scholarship for SC and ST students, ICDS and ICPS have affected implementation of the schemes,” he pointed out.
Informing that DMF Trust Board have been constituted in all the 30 districts, Behera said the Centre may issue suitable notification with regard to exemption of DMF Trusts from Income Tax as the DMF Trusts funds are being utilised towards the direct benefit of the persons living in mining operations.
He urged the Centre to issue instructions to all banks to open bank branches in identified unbanked GPs in the State.
“The royalty on coal was last revised by the Centre in April 2012. As per norm, the coal royalty should be revised every 3 years, which is due for April, 2015. Hence, Government of India should revise the royalty further delay,” demanded Behera.
Besides, Behera also demanded for gradual elimination of cess and surcharge of the customs duty and direct taxes, pre-payment of National Small Saving Fund loan, establishment of Eastern Industrial Corrider between Vishakhapatnam and Kolkata through Odisha, provision of sufficient funds for development and maintenance of Natioanal Highway and estimation of Central Share of Accelerated Irrigation Benefit Programme(AIBP) projects at realistic level.