New Delhi: The Centre has burdened the state governments by cancelling several necessary schemes and reducing its share in many jointly funded schemes, said TMC member Derek O'Brien in the Rajya Sabha on Monday. O'Brien said the ruling BJP had promised in its 2019 election manifesto to pursue federal governance by ensuring greater involvement of the states in all aspects of policy making, but the Central government failed to do so.
"When the BJP came into power in 2014, the states were spending 46 per cent more than the Union government on various schemes, but in 2021-22, states spent 150 per cent more than the Union government," the Trinamool Congress (TMC) leader said. Moreover, 29 of the 98 Bills passed between 2014 and 2021 were "anti-federal in nature", he said and accused the Centre of acting as the "economic blockade" of the state governments.
"States have been burdened because the Centre cancelled schemes seven years ago and one of the schemes was the backward region grant funds," he said, adding that "it was so important for the states that they have to continue the scheme". The Central government also reduced its fund share in many schemes such as Sarva Shiksha Abhiyan.
While speaking on FRBM (Fiscal Responsibility and Budget Management), O'Brien said, "You took it up from 3.5 per cent to 4 per cent and now this year, you have brought the state borrowing down to 3.5 per cent." According to him, when this limit was increased to four per cent, some conditions were imposed on the state governments such as the privatisation of electricity.
"Please take it back to 4 per cent and this should be unconditional," he added. The Upper House was having a debate on the Appropriation Bills (Nos. 4 and 5), 2022. Over GST, the TMC leader said now cess goes directly to the Centre and states are being deprived. In 2011, 10 per cent of the total percentage of the gross tax revenue was cess, which is now increased to 26 per cent going only to the Centre.
BJP had also assured to implement the recommendation of the 14th Finance Commission report. Even the 15th Finance Commission has kept the transfer to states from the divisible tax pool to 41 per cent. "The state's share in central taxes is estimated to be just 30 per cent of the gross tax revenue of the central government," he said adding that there is a diversion in the goalpost of the promises made in 2019 and there is a new goal post of 2029.
In a lighter vein, O'Brien said, "Even Mbapp (French footballer) would have retired by then." Over management of assets, he said, in the last five years Rs 10 lakh crore has been written off by banks as bad debts, which is equal to the combined budget of the states of West Bengal, Rajasthan, Chhattisgarh, and Telangana.
Raising concerns over the reduction in jobs, O'Brien said the unemployment rate in the last three months is eight per cent. "Urban unemployment in the age group of 20 to 24 years is 42 per cent," he said adding "the youth do not want slogans but jobs". He also alleged that over 95 per cent of the 200 politicians booked and arrested by the CBI are from the Opposition and said the opposition parties are ready for a "good fight".
During the discussion, BJP member Sushil Kumar Modi highlighted the achievements of the government and mentioned several schemes such as Pradhan Mantri Garib Kalyan Yojana, Direct Benefit Transfer, and MUDRA, which have helped the common people. He also mentioned the recent announcement by several state governments to implement the Old Pension Scheme by replacing the New Pension Scheme (NPS) and requested them to refrain from it as it would "put a burden on the future generation".
"Presently, the state governments and the Centre pay Rs 5.76 lakh crore per year towards pension. States such as Himachal Pradesh have to spend 80 per cent of their tax revenue in pension, while Bihar spends 60 per cent and Punjab 34 per cent," he said. The BJP MP further said that former Prime Minister Manmohan Singh and former Finance Minister P Chidambaram also supported implementation of NPS. Kanimozhi of DMK raised the issue of the Pradhan Mantri Kishan Scheme.
Under the scheme income support is being provided by the government, but the beneficiaries are identified based on their land records that do not cover landless agricultural labourers, who account for 55 per cent of the agricultural workforce, she said. "The government should encourage the states to provide a digitalised mapping of farmlands incorporating every finer detail of the land utility by cent per cent in a time bound manner," the DMK member said, adding that tenancy or lease certificate should be issued to the tenant farmers enabling them to obtain agricultural credit. (PTI)
