India’s federal structure is in danger:Modi in Delhi

Gujarat Chief Minister Shri Narendra Modi today strongly advocated for more appropriate Central Resource Funding to States for development.

While participating in a panel discussion session of the theme ‘Development and Resource Security’ during India Today Conclave : 2010 held in New Delhi, Gujarat Chief Minister categorically said that in a federal system of democracy, states should be strong enough to deliver goods and fulfill people’s aspirations for development. The states have to bring results and development responsibilities but Centre holds the resources and more funding to accelerate development from Central resources is the need of the hour, he said.

Modi said, “The Centre enhanced salaries of their employees and states are forced to follow to keep their employees happy, but while the Centre earns more revenue in the form of income tax, states are left to bleed.” Modi demanded that extra income tax earned from states must be returned.

Shri Narendra Modi also demanded proper compensation from the Government of India to ease the heavy burden of the implementation of Sixth Pay Commission for state government employees. He said that the entire burden of the Central Pay Commission recommendations had fallen on the states, whereas the ‘Income Tax’ income from increased pay packages of the government employees is going to Central exchequer only.

“Gujarat’s rural roads are fantastic. But we are not getting funds from the Pradhan Mantri Gram Sadak Yojana. Why? The Centre says you have already laid the roads. So, we are being punished for good performance?”, he said.

Gujarat has been awarded Two awards of India Today Conclave – one for Best Fast Mover State in Agriculture and second for Best Rural Roads. The Vice-President of India Prof. M. Hamid Ansari gave away these awards to Gujarat CM.

Highlighting prudent financial management and fiscal reforms of Government of Gujarat, Shri Narendra Modi said that the development expenditure is more than double that of non-development expenditure. The state government has achieved appreciable development with efficient Finance management with unique growth strategy and innovative tax reforms.

Gujarat CM also highlighted new heights in Agriculture and quality change in rural economy. Gujarat agriculture growth rate is 12.8 per cent during last 5 years which is the highest in India and Gujarat farmers benefited immensely from successful campaign like KRISHI MAHOTSAV and Rain Water Harvesting Water Management. He stressed the need for Agro Infrastructure upgradation in the country.

Shri M.J. Akbar, Editorial Director, India Today chaired the panel discussions.