UT demands 10% annual increase in general central assistance

The Puducherry administration has demanded a 10% annual increase in general central assistance to the Union Territories.

Participating in the pre-budget meeting of state and union territory finance ministers organized by the finance ministry on Friday in Rajasthan’s Jaisalmer, Public Works Minister K Lakshminarayanan said that the union territory has limitations in finding its own resources due to geography. size and limited natural resources.

Mr. Lakshminarayanan, who attended the meeting in place of Chief Minister N Rangasamy with the finance portfolio, said Puducherry should be considered within the state for the limited purpose of sharing revenue between the Center and the Union Territories.

“Our request to treat UTs equally with states in the matter of allocation of funds has been rejected on the basis of Article 280(3) of the Constitution which refers only to states. But whenever the Government of India takes a policy decision on financial matters, Puducherry is treated at par with states,” he said. said

In view of these facts, it was requested to include Puducherry under the terms and reference of the Central Finance Commission by suitably amending Article 280 (3) of the Constitution with reference to the words “States” or special reference should be made to the Commission. Include union territories for distribution of funds, he said.

The administration is critically dependent on the NCA for funding. Therefore, giving a big boost to the NCA, it is necessary to make it based on a formula similar to the recommendations of the Finance Commission. Until then, Union Territories should be considered for increasing NCA by at least 10% every year, the minister said.