Panel moots tax sops, 90:10 Centre-States funding

NITI Aayog’s Chief Ministers’ sub-group has suggested 90:10 per cent Centre-State funding ratio for taking up Swachh Bharat Mission projects.

Chandrababu Naidu, Chairman of NITI Aayog’s Chief Ministers’ sub-group and Chief Minister of Andhra Pradesh, briefing reporters after the meet on Wednesday, said, “In additions to viable models, availability of funds is also a major issue, without which we cannot do anything. The meeting discussed in detail the funding options – whether government, PPP or CSR.”

“We need around ₹2.24 lakh crore to take up Swachh Bharat Mission projects. In villages and rural areas, the need is around ₹1.34 lakh crore, in urban areas ₹62,000 crore, in schools Rs 2,528 crore and anganwadi schools around Rs 768 crore,” he added. A detailed report is expected to be submitted to the Centre by August 15 this year.

Today’s meet was also attended by Karnataka Chief Minister Siddaramaiah, Chief Minister of Uttarkhand Harish Rawat and Chief Minister of Mizoram Lal Thanhawla. Delhi, Bihar, Maharashtra, Sikkim, West Bengal and Haryana were represented by Ministers and senior officials.

“The group, before finalising the report, is planning to meet respective ministries with regard to Swachh Bharat Mission projects. Finance ministry will be approached for tax incentives, especially for waste to energy projects. Urban and Rural Development ministries have huge funds, Power ministry and CERC will be briefed on technologies available for converting waste to energy. Only after wider consultations will we be in a position to know the status of fund availability,” said Naidu.

Karnataka Chief Minister Siddaramaiah said he had asked Naidu to include the 90:10 Centre-State funding formula in the final report. He said the fund requirement for the Swachh Bharat Mission at present was being drawn out of the devolution made to the States under the 14th Finance Commission for the year 2015-16.

However, this was not an appropriate model. He said while giving funds to the States, the Centre has simultaneously reduced the allocations under various Central sector and Centrally-sponsored schemes, and also modified the sharing pattern. This has adversely affected most of the States.

“There is a net reduction of ₹1,987 crore to the State after the devolution. The 14th Finance Commission has not recommended any State specific grants except the grants to local bodies. Against ₹3,509 crore of Finance Commission grants estimated in 2014-15, the grants available in 2015-16 are only ₹1,772 crore, amounting to reduction of ₹1,737 crore,” Siddaramaiah said.

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