Centre slashes MP’s tax share by ₹2,700 cr, which was promised months ago, claims MP Finance Minister

Days after Finance Minister Nirmala Sitharaman presented the Union Budget, the Madhya Pradesh Congress government alleged that the Centre has slashed ₹2,700 crore of its tax share on Friday while presenting the budget.

Talking to media, State Finance Minister Tarun Bhanot said, “During the vote on account by the Nation Democratic Alliance (NDA) government before elections, MP’s share of ₹63,500 crore was announced. However, in Friday’s budget, share of the state in tax devolution was reduced by ₹2,700 crore. It’s a huge loss. It is a “ betrayal” of the people of the state by the NDA government. How would this amount be compensated?”

Vice-chairman of Congress media cell Bhupendra Gupta said, “The Centre should stop being partial towards the Congress governments.” He said that the Centre has denied adequate funds to the state, and now redefined its share in development work to 60%.

“Earlier, the projects funded by the Centre would have 80% and 20% sharing of funds by the Centre and the state respectively. Now, they have reduced their share to 60% and the state’s share has been increased to 40%.”

Quoting chief minister Kamal Nath, Gupta said the CM has also objected to the 3% restriction under the FRBM (Fiscal Responsibility and Budget Management act) over taking loans for development works. He said that the needs of the state differ from one state to the other.

Reacting to the budget, Chief Minister Kamal Nath had termed it a disappointing one and falling short of public expectations. “There is nothing in the budget which could increase farmers’ income, or give them any relief from loans. There is nothing which could help boost up the country’s economy”, said Kamal Nath.

He said the budget has reduced the state’s share which was promised in the interim budget presented a few months earlier. The state has lost ₹2,677 crore in these budget proposals. The budget shows poor economic management of the central government. The data of economic growth presented by the government have also been proved false after the budget, he said.