15th Finance Commission to review non-payment of RDG to the State

The chairman of 15th Finance Commission, N K Singh has assured that the demand of Uttarakhand for resumption of Revenue Deficit Grant (RDG) would be looked with a positive mind. He was addressing the media persons on the second day of the panel’s Uttarakhand visit on Tuesday.

Singh said that the State Government has, specifically, raised the issue of RDG and complained that the grant that had been provided to Uttarakhand by the 11th, 12th and 13th Finance Commissions had discontinued by the 14th Finance Commission. “The grudge of the State Government was that the 14th Finance Commission’s presumptions about Uttarakhand were far from the reality. It is normally a tradition that one FC does not comment on other FCs.

It is also not desirable. We, however, assure that the demand of RDG would be looked into with positive attitude,’’ he said.

Singh, further, said that Uttarakhand is bestowed with immense natural wealth and FC is committed in a reasonable way to fulfil the huge untapped potential the State is endowed with. He admitted that the State is not able to utilise its resources due to variety of reasons.

Citing the example of problems being faced in setting up infrastructure in Uttarakhand, Singh said that the Government has told the panel that the State has to spend a lot more in view of its unique geographical conditions as compared to other States while stressing on new parameters be fixed regarding grant of the central assistance.

On the demand of the State for grant of Green Bonus in lieu of the ecological and environmental services provided by it, Singh said that the 14th Finance Commission’s formula on calculating environmental contribution and ecological services may be reviewed.

He said that there is an overwhelming consensus among the States over the resumption of the central financial assistance for the three-tier panchayati raj system.

Heaping praise on the State Government and its leadership for its unwavering focus on development of Uttarakhand, he said that the appreciable effort has been made by the Government and its officers in presenting the case of the State before the commission.

Singh, further, said that during its stay so far in Uttarakhand, the commission has met representatives of urban local bodies (ULB), three-tier panchayati raj system and major political parties and has taken their feedback and suggestions. The Chief Minister Trivendra Singh Rawat and the Finance Minister Prakash Pant met the commission on Tuesday.