Ahmedabad, 6 September, 2011

In accordance with the statement showing the devolution of Gujarat’s share of central taxes and duties during the 12th Finance Commission recommended period is Rs. 24716.93 crore. During the same period, the 12th Finance Commission recommended and awarded an amount of Rs. 3603.46 crore has the grant-in-aid to Gujarat. This was stated by Mr. S. S. Palanimanickam, the Union Minister of State for Finance in Rajya Sabha today in response to a question from MP Mr. Parimal Nathwani(in photo).

The 12th Finance Commission’s recommended period for these figures is for last 5 years from 2005-10. The Minister’s statement presented on the table of the house revealed that Gujarat mobilized maximum Rs 5890.92 crore during 2009-10 towards State’s share of central taxes and duties. The cumulative grant-in-aid to the State for the five year’s period between 2005 and 2010 as recommended by 12th Finance Commission and allocated to Gujarat was Rs. 3708.28 crore; of which Rs. 3603.46 crore were released to the State.

As per the statement presented in the House, the grant-in-aid covered several sectors such as Forest, Roads & Bridges, Public buildings, Heritage conservation, State specific needs, Local bodies’ grant and Calamity Relief Fund.

The minister also stated that reasons for short release lied in non-fulfillment of requirement such as receipt of duly approved action plan, required budget provision and actual expenditure under the relevant major heads being lower than levels prescribed by the 12th Finance Commission. The short release of the grant- in-aid was mainly under the public buildings’ head and the state specific needs’ head. Under public buildings’ head, Rs. 101.81 crore were released as against an allocation of Rs. 203.61 crore. In case of short release under State specific needs’ head, Rs. 196.98 crore were released as against an allocation of Rs. 200 crores during the five years of 2005-10.