During the meeting, Mamata raised the debt problem that the state was facing, most of which was a result of the actions of past governments. This debt burden, leading to high interest payments, was affecting development expenditure in West Bengal. She asked for debt relief and relief from interest payments. She was also concerned about pending releases.
Prime Minister Narendra Modi on Monday assured West Bengal Chief Minister and Trinamool Congress (TMC) supremo Mamata Banerjee that no stone will be left unturned for the development of the state.
Mamata met Prime Minister Modi in the Parliament House earlier today. Subsequently, a delegation of MPs from the Trinamool Congress along with the Chief Minister met the Prime Minister.
During the meeting, Mamata raised the debt problem that the state was facing, most of which was a result of the actions of past governments. This debt burden, leading to high interest payments, was affecting development expenditure in West Bengal. She asked for debt relief and relief from interest payments. She was also concerned about pending releases.
Prime Minister Modi on his part explained that he is a firm believer in cooperative federalism. He has constantly been saying that only strong states can make a strong India and, therefore, states must be strengthened to meet development needs of their people.
The Prime Minister stated that he is fully committed for West Bengal's and Kolkata's development.
It is with this in view that the Central Government has agreed to devolve 42 percent of the divisible pool of taxes to states for the next five years. This is unprecedented and a rise from 32 percent which is the current share.
In addition, the Central Government has accepted other recommendations of the 14th Finance Commission relating to Revenue Deficit Grants and other Grants.
On the problem of debt, the Prime Minister said that you have inherited a large burden.
"We too have inherited a large burden. The Centre and States have to collectively find a solution to this. In any case, the 14th Finance Commission has taken into account the interest burden on states and has fully compensated the revenue deficit arising as a result of this," said Prime Minister Modi.
"This is why West Bengal is getting an additional Revenue Deficit Grant along with only two other non-Special Category States. Therefore, interest burden should not affect development activities any more in future," he added.
The additional financial resources being made available by the Central Government from the current fiscal onwards will substantially improve the position of the state to discharge interest liability and free up funds for developmental activities to boost growth.
The Prime Minister also pointed out that the Union Government has decided to give West Bengal the royalty on coal and other minerals.
This will provide a benefit of Rs. 1,600 crore to the state annually. In addition, West Bengal will get Rs 11,200 crore from the coal blocks that have been auctioned so far and there will even more revenue in future.
In this scenario, West Bengal is better placed as compared to the past and has adequate funds to meet its development needs fully.
On the issue of releasing funds under MNREGA, the Prime Minister assured that this scheme is fully provided for. West Bengal has already received Rs 3,744 crores this year and pending claims of Rs. 1,500 crore will be settled in March itself.
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