Maharashtra has made a strong case for devolution of about Rs 1,50,000 crore from the divisible Centre pool of taxes during 2010-2015.
Making a presentation to the 13th finance commission headed by Vijay Kelkar, the state government sought funding of Rs 16,000 crore for developmental needs of Mumbai during the five-year period.
State’s total demand is a five-fold increase as compared to the previous five years.
The finance commission recommends devolution of resources from the Centre to the state governments every five years and it is usually coterminous with the five-year plan.
“State plans to develop Mumbai as an international finance centre. For this we sought a special fund of Rs 16,000 crore,” Finance Minister Dilip Valse-Patil told reporters after meeting the commission in Mumbai.
Maharashtra has also suggested that a fund of Rs 50,000 crore be set up by the Centre for the states which are developing rapidly, Valse-Patil said.
For enhancing security apparatus, specially the coastal security, the state has demanded Rs 300 crore, while Rs 435 crore have been sought for improving road network in Naxalites-affected areas.
Memorandum submitted by the state to the commission states that Maharashtra has “serious issues” with the income criterion.
Under the criterion, Maharashtra is deemed to be a rich state (and devolution is reduced), but not all areas of the state are as developed as Mumbai or Pune, Valse-Patil said.
The criteria like fiscal discipline and tax collection should be given more weightage in the allocation of funds, the state has suggested to the commission.