some states like Chattisgarh Asked the Center to transfer the employees’ deposits under the new pension scheme to them so that they can revert to the old pension scheme.
In the customary pre-Budget meeting with the Union Finance Minister Nirmala SitharamanStates sought continued financial support for infrastructure development.
In the Budget for 2022-23, the Center had announced an interest-free loan of Rs 1 lakh crore for a period of 50 years to states, in addition to normal borrowings for capex. States also demanded early release of outstanding amount GST Review of compensation and GST rates.
Minister of State Bhagwat Karad told media persons after the meeting, “The main concern in various states was to improve their facilities, to improve their income and to improve the overall status of the states in various fields.”
Chhattisgarh Chief Minister Bhupesh Baghel asked the Center to release funds to implement the old pension scheme for state government employees. He also demanded an increase in royalty for minerals extracted in the state and fixing of different royalties on different grades of coal and iron ore.
Tamil Nadu Finance Minister P. Tyag Rajan States cutting across party lines have said that the centrally sponsored schemes are constraining the financial autonomy of the states as in some schemes the states contribute a large amount which is more than the Centre’s contribution.
Thiaga Rajan told media persons, “Irrespective of political party, all states have expressed the common theme that fiscal autonomy is limited to the extent of centrally sponsored schemes, to the extent of change in the funding ratio of such schemes.”
Finance Minister of Bihar Vijay Kumar Choudhary said that the centrally sponsored schemes should be limited as the burden on the states for such schemes is increasing. He said that if the Center wants to help the states, then the Center should only implement Central Sector Schemes.
Meghalaya Chief Minister Conrad Sangma said he has sought an increase in capital assistance to states. “We have asked for a system where it is linked to the population. Emphasis should be on village-based schemes,” he said.