Raman Singh hails Finance Commission recommendations, thanks PM Narendra Modi

NEW DELHI: Chhattisgarh Chief Minister Raman Singh today welcomed the 14th Finance Commission report recommending increase in states' share in the Union taxes from existing 32 to 42 per cent and said it was aimed at promoting cooperative federalism.

"On behalf of the people of Chhattisgarh, I thank Prime Minister Narendra Modi for his vision to strengthen our federal polity and promote cooperative federalism," Singh said in a tweet.

The 14th Finance Commission, in its report tabled in Parliament today, has recommended by majority decision that the the states' share in the net proceeds of the union tax revenues be 42 per cent.

"The recommendation of tax devolution at 42 per cent is a huge jump from the 32 per cent recommended by the 13th Finance Commission. The transfers to the states will see a quantum jump. This is the largest ever change in the percentage of devolution.

"In the past, when Finance Commissions have recommended an increase, it has been in the range of 1-2 per cent increase. As compared to the total devolutions in 2014-15 the total devolution of the states in 2015-16 will increase by over 45 per cent," according to a Finance Ministry statement.