State asks for 50% share for states in tax revenue
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Thiruvananthapuram: Kerala asked 15th Finance Commission to increase the states' share of central tax to 50 percent.
Chief Minister Pinarayi Vijayan submitted the demands of the state to Finance Commission Chairman, NK Singh here on Tuesday.
Kerala pointed out that the 42% share allowed by 14th Finance Commission is insufficient. Increase in cess and surcharges widen the gap in revenues of state and the Centre. However, the states have to bear the cost of 58% of expense in the social and economic sector. The tax share should be increased in this situation. Kerala's share has dropped from 3.5% to 2.5%. It should be increased. The weightage given to difference in revenue should be decreased from 50% to 20%.
The weakening of agriculture sector undermines the financial structure of the state. A public disaster management insurance scheme should be implemented.
A special grant-in-aid should be allowed for rubber farming. When crude oil price fell in the international market, the Centre hiked the excise duty. But the so increased portion of revenue is not shared with the states.