PM writes to Chief Ministers

Published By : Admin | February 24, 2015 | 14:31 IST
Share
 
Comments
"Government accepts recommendations of the 14th Finance Commission"
"Record increase in devolution of resources to states "
"PM: Our Government has decided to devolve maximum money to states and allow them the required freedom to plan the course of states’ development"
"सरकार ने वित्त आयोग की सिफारिशों को स्वीकार किया"
"राज्यों को दिए जाने वाले विभाज्य पूल में रिकार्ड बढोतरी"
"प्रधानमंत्री: हमारी सरकार ने निर्णय लिया है कि राज्यों को अधिक से अधिक पैसा हस्तांतरित किया जाए एवं राज्य सरकारों को अपने-अपने राज्यों के विकास की दिशा तय करने की स्वतंत्रता दी जाए"

PM Modi has written to Chief Ministers, informing them of the Government`s decision to wholeheartedly accept the recommendations of the 14th Finance Commission. .

Following is the text of the Prime Minister`s letter:

"You are aware that ever since our Government came into office, I have been working to strengthen our federal polity and promote cooperative federalism. The people of the country have high expectations from their governments and do not want to wait. Therefore, since the very beginning, we have been committed to a rapid and inclusive process of growth. Looking to the diversity of the country, we understand that real and functional Federal Governance is the only vehicle to achieve this objective quickly and holistically.

I sincerely believe that strong states are the foundation of a strong India. Even as Chief Minister, I had been saying that the progress of the country depends on the progress of states. This Government is, therefore, committed to the idea of empowering states in all possible ways. We also believe that states should be allowed to chalk out their programmes and schemes with greater financial strength and autonomy, while observing financial prudence and discipline. We are clear that without this, local development needs cannot be met and marginalised communities and backward regions cannot be brought into the mainstream.

With this in mind, we have replaced the Planning Commission with the NITI Aayog with the explicit intent of ensuring that this becomes a common forum for forging a national vision on development. Such a vision and the concrete steps that all of us take will help in realising the development aspirations of our people.

It is in this context that we have wholeheartedly accepted the recommendations of the 14th Finance Commission, although it puts a tremendous strain on the Centre’s finances. The 14th FC has recommended a record increase of 10% in the devolution of the divisible pool of resources to states. This compares with the marginal increases made by previous Finance Commissions. The total devolution to states in 2015-16 will be significantly higher than in 2014-15. This naturally leaves far less money with the Central Government. However, we have taken the recommendations of the 14th FC in a positive spirit as they strengthen your hand in designing and implementing schemes as per your priorities and needs.

In making its recommendations, the 14th FC has made a fundamental shift in the pattern of financing revenue expenditures. It has assumed all central assistance to State Plan Revenue expenditure to be part of the states’s revenue burden and determined devolution on this basis. Para 7.43 of its report explains this. The dominant view of states too has been that a majority of the resources should flow as tax devolution and the number of CSS should be reduced as the 14th FC states in Paras 8.6 & 8.7.

Therefore, there is a shift from scheme and grant based support from the Central Government to a devolution based support. Hence, the devolution of 42% of divisible resources.

Therefore, as per the 14th FC, all State Plan Revenue expenditure has to be met from the resources being devolved to states. In spite of this large devolution, we have decided to continue with some support to topmost areas of national priority such as poverty elimination, MNREGA, education, health, rural development, agriculture and a few other areas.

You will appreciate that, following the acceptance of the 14th FC recommendations, we are moving away from rigid centralised planning, forcing a ‘One size fits all’ approach on states. States have always been voicing their opposition to this philosophy for years. Accepting these long standing concerns and long-felt lacunae in the country’s planning process, our Government has decided to devolve maximum money to states and allow them the required freedom to plan the course of states’ development. The additional 10% of resources being devolved will give you this freedom.

In this overall context when you are flush with resources, I would like you to have a fresh look at some of the erstwhile schemes and programmes supported by the centre. States are free to continue or change these schemes and programmes as per their discretion and requirement. In all these, the Union Government, particularly the NITI Aayog, will support states in developing a strategy and in its execution through ideas, knowledge and technology.

This is all towards the fulfilment of my promise of co-operative federalism. As you have already seen, we have decided to involve states in discussing and planning national priorities. This is being done so as to maximise the outcome from every rupee spent either at the centre or the state. It was with this spirit of Team India that all Chief Ministers have been made equal partners in the Governing Council of NITI Aayog. This is our strategy to take the country to a faster and yet inclusive growth trajectory through co-operative federalism which is real and true federalism.

We are happy with our decision and that resources are going to the right place. Resources are going to states to ensure that poverty is eliminated, jobs are created; houses, drinking water, roads, schools, hospitals and electricity are provided. This has never happened in this country before.

In addition, we have recently revised the rates of royalty on minerals which benefits many states. The ongoing transparent auction of coal and other minerals will result in flow of over Rs 1 lakh crore of additional funds to mineral and coal bearing states. Eastern India, which is less developed in spite of having immense mineral resources, is an important gainer and this is an opportunity for this part to catch up with the rest of the country.

Resources, thus, are not and will not be a problem. The issue is the direction and intent of our policies and our capacity to implement. You will agree that money, either at the central or the state level, should be spent to address the key challenges before the Nation. The focus should be the poor, farmers and common men and women, the youth and children. The challenge is to address the factors which inhibit the realisation of their full potential.

This is a golden opportunity in our nation’s economic development process. My recent visits across the world have shown that there is a lot of optimism about India and interest in investing here. Everyone wants to partner with India in its growth story. This is not an opportunity for the central government, but an opportunity for India as a whole.

Let us aim at a quantum leap in the process of our nation’s development. I am writing this to you in order to seek your co-operation and involvement in defining key challenges facing your state and the country and to devote the time, energy and resources to address these. I expect that every state will come up with a plan for its key priorities and deploy resources for this purpose. We should also adopt a rigorous system of evaluation of schemes and projects. I will work with you in this effort. Together, we have to establish benchmarks in terms of quality of works and their speedy execution.

Let us work together in this direction. I will be available for any consultation in this regard at any time."

Read highlights of the PM's letter to State CMs in various languages.

Modi Masterclass: ‘Pariksha Pe Charcha’ with PM Modi
Share your ideas and suggestions for 'Mann Ki Baat' now!
Explore More
Do things that you enjoy and that is when you will get the maximum outcome: PM Modi at Pariksha Pe Charcha

Popular Speeches

Do things that you enjoy and that is when you will get the maximum outcome: PM Modi at Pariksha Pe Charcha
PM calls for rapid rollout of 5G, says will contribute $450 bn to economy

Media Coverage

PM calls for rapid rollout of 5G, says will contribute $450 bn to economy
...

Nm on the go

Always be the first to hear from the PM. Get the App Now!
...
Virtual meeting between PM Modi and PM of Cambodia
May 18, 2022
Share
 
Comments

Virtual Meeting between Prime Minister Shri Narendra Modi and H.E. Samdech Akka Moha Sena Padei Techo Hun Sen, Prime Minister of Cambodia

Prime Minister Shri Narendra Modi held a virtual meeting today with H.E. Samdech Akka Moha Sena Padei Techo Hun Sen, Prime Minister of Cambodia.

The two leaders held discussions on the entire range of bilateral issues, including cooperation in the fields of trade and investment, human resource development, defence and security, development cooperation, connectivity, post-pandemic economic recovery and people-to-people ties. They expressed satisfaction at the pace of bilateral cooperation.

PM Hun Sen emphasised the importance that Cambodia attaches to its relations with India. Prime Minister Modi reciprocated the sentiment and stressed Cambodia’s valued role in India’s Act East policy. The leaders reviewed the robust development partnership between both countries, including capacity building programmes and Quick Impact Projects under the Mekong-Ganga Cooperation framework. Prime Minister Modi also highlighted the historical and civilizational links between the two countries and expressed his happiness at India’s involvement in restoration of Angkor Wat and Preah Vihear temples in Cambodia, which depict the cultural and linguistic connect between the two countries.

Prime Minister Hun Sen thanked India for providing 3.25 lakh doses of Indian-manufactured Covishield vaccines to Cambodia under Quad Vaccine Initiative.

The two leaders complimented each other on the 70th anniversary of the establishment of diplomatic relations between India and Cambodia being celebrated this year. As part of these celebrations, Prime Minister Modi invited His Majesty the King of Cambodia and Her Majesty Queen Mother to visit India at a mutually convenient time.

The two leaders also exchanged views on regional and global issues of shared interest. Prime Minister Modi congratulated Cambodia on assuming the Chairmanship of ASEAN and assured India’s full support and assistance to Cambodia for the success of its Chairmanship.