Gangtok, Nov 04: Twelveth Finance Commission Chairman C Rangarajan has assured the Sikkim government of looking into its specific concerns and problems before finalising the commission's recommendations on fiscal transfers. The assurance was given by Rangarajan at a meeting here yesterday with Chief Minister Pawan Chamling, his council of ministers and other officials.
The meeting was part of the Commission's programme of interacting with the state governments prior to formulating its recommendations on transfer of resources from the Centre to the state within the broad framework of fiscal stability, official sources said here today.
Pointing out that the commission was aware of the problems faced by special category states, particularly Sikkim, Rangarajan said he would examine the state's request for fiscal relief.
He, however, added this had to be matched by a corresponding fiscal effort on the part of the state government including legislative measures for strong fiscal corrections.
Chamling suggested at the meeting that the existing devolution formula of the commission needed modifications and demanded that the states' share of devolution be raised from the current 29.5 per cent of net proceeds to 45 per cent of gross collection including surcharge.
He had also requested the commission to adopt the latest population figure in case of Sikkim in place of the 1971 census figure.
Bureau Report