Haryana finance minister Birender Singh has demanded that the Centre share at least 50% of the burden of the state to implement the Sixth Pay Commission recommendations, finance the entire cost of the metro projects, cut down interest rates on crop loans of farmers to 4% and subsidise cost of construction of dwelling units under “Ashiana” for the poor.
Speaking at the pre-Budget meeting of finance ministers of states and union territories, held under the chairmanship of finance minister Pranab Mukherjee in New Delhi on Thursday, Singh pointed out that implementation of the recommendations of the Sixth Pay Commission had placed a heavy burden on the state’s finances. The salary arrears alone amount to Rs 6,000 crore and another Rs 1,350 crore has to go on account of pension arrears. The slowdown in tax collection due to recession has put a severe strain on the state finances, he said.
At least 30% of the salary outgo would immediately flow back to the Centre by way of income tax and another 25 to 30% flows back through indirect taxes on account of increased consumption demand. He requested the Centre to bear the entire cost of the metro projects, which would improve connectivity between Delhi and Gurgaon as well as Faridabad and Bahadurgarh. He said the state government had identified a few road links between Delhi-Gurgaon and Delhi-Sonepat, for which he demanded a grant-in-aid of Rs 1,000 crore.
He also urged the Centre to reduce rate of interest on crop loans to farmers.