Synopsis: Finance Minister Nirmala Sitharaman clarified that no state was excluded from its share in the 2024 Union Budget, countering claims that only Andhra Pradesh and Bihar were mentioned. She urged southern states to acknowledge the benefits of labor mobility when discussing tax devolution with the Finance Commission.
Finance Minister Nirmala Sitharaman has firmly countered criticisms regarding the 2024 Union Budget, asserting that no state was denied its fair share of allocations.
Addressing the specific complaint that only Andhra Pradesh and Bihar were mentioned in her budget speech, she emphasized that the allocations were in line with historical distributions, including mandated support for Andhra Pradesh post-bifurcation in 2014.
In an interview, Sitharaman encouraged southern states to present their developmental indicators and achievements to the Finance Commission.
She highlighted the importance of labor and capital mobility, noting that states should recognize the contributions of individuals from various regions in their economic growth.
"The contributions in those economies are not exclusively by people of that state alone," she said, underscoring the interconnectedness of labor and capital in today's economy.
Responding to concerns about potential revenue declines due to better-managed population growth in these states, Sitharaman urged them to engage with the Finance Commission, emphasizing the need to present human development indicators.
She stressed the importance of elevating the entire nation to similar developmental levels, reiterating that developmental indicators, including human ones, must be considered.
Despite opposition claims of neglect, Sitharaman maintained that the budget aligns with Prime Minister Narendra Modi's vision of simplicity and transparency, ensuring clear communication of financial changes to the public.
She clarified that the absence of specific state mentions in the budget speech does not equate to funding omissions.
The Finance Minister also touched on the contentious issue of petrol and diesel taxation, explaining that while these fuels are currently under VAT, provisions for their inclusion under GST are ready, pending consensus among states within the GST Council.
In conclusion, Sitharaman's remarks aim to quell criticisms and emphasize the equitable distribution of funds among states.
By encouraging states to highlight their developmental achievements and understand the benefits of labor and capital mobility, she promotes a collaborative approach to national growth and development.
Disclaimer: This article is based on the statements made by Finance Minister Nirmala Sitharaman and does not constitute financial advice. Readers are encouraged to refer to official government publications for detailed information on the Union Budget 2024.
