PM Modi to states: Synchronise budgets with Centre, use PLI scheme to attract investment

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February 21, 2021 4:30 AM

“As a government, we also have to honour this (private sector) enthusiasm, the energy of the private sector and give it as much opportunity in the Aatmanirbhar Bharat campaign,” he said.

The PM said about Rs 65,000 crore are spent annually in the import of edible oils which should have gone to our farmers.The PM said about Rs 65,000 crore are spent annually in the import of edible oils which should have gone to our farmers.

Calling for better coordination and policy framework between the Center and the states, Prime Minister Narendra Modi on Saturday asked states to synchronise their budgets with that of the Centre and take full advantage of the production linked incentive (PLI) schemes to boost manufacturing by tapping the private sector.

Addressing the Governing Council of the Niti Aayog, Modi said the Centre has introduced PLI schemes for various sectors providing an excellent opportunity to increase manufacturing in the country. He urged the states to take full advantage of this scheme as well as reap the benefits of reduced corporate tax rates. Among others, the meeting was attended by chief ministers of states.

The Centre has announced 13 PLI schemes in wake of the Covid-19 pandemic last year. The idea was to lure mainly large companies to ramp up manufacturing base and boost exports. The total incentives under the PLI schemes, covering sectors including telecom, electronics, auto part, pharma, chemical cells and textiles, stood at Rs 1.97 lakh crore over a five-year period. Various ministries are firming up proposals relative to the sectors they oversee.

“As a government, we also have to honour this (private sector) enthusiasm, the energy of the private sector and give it as much opportunity in the Aatmanirbhar Bharat campaign,” he said.

He stressed on the importance of making the states self-reliant and giving momentum to development in their budget. He announced that there would be a major increase in the economic resources of local bodies in the 15th Finance Commission. “States can always take a cue from the Union Budget. The timeline between the Union budget and budget of states is very important,” he said. In general government budget, the combined annual spending by all states was higher than the Centre as a big chunk of central budget is also spent through the state government machinery. States together spent Rs 33.33 lakh crore in FY20 through their budget while the Centre spent Rs 26.86 lakh crore.

The PM said about Rs 65,000 crore are spent annually in the import of edible oils which should have gone to our farmers. Similarly there are many agricultural products that are not only produced for the country but can also be supplied to the world. For this, it is necessary that all states make their agro-climatic regional planning strategy, he said.

“Ease of living and ease of doing business will go hand in hand. Laws and regulations have to be amended for the brighter future of our nation,” Modi said.

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