Press Information Bureau

Government of India

Ministry of Finance

18-May-2012 16:24 IST

Allocation to States

The 13th Finance Commission (FC-XIII), an expert body set up under Article 280 of the Constitution of India, had recommended devolution/transfers of funds from the Centre to States after assessing inputs from States. FC-XIII has recommended an estimated total transfer of Rs.1766676.80 crore to States during its award period (2010-15), which is an increase of 134% over total estimated transfers recommended by the 12th Finance Commission (TFC) during its award period (2005-10). Transfers of funds recommended by FC-XIII have not declined for any State, including Andhra Pradesh, as compared to that recommended by TFC. Recommendations of Finance Commission, once accepted, by the Government, are not applied differently across States.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Lok Sabha today.

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DSM/SS/Hb

Devolution of central funds maintained as recommended by finance commission, ensuring no state receives reduced transfers post-review. The 13th Finance Commission recommended devolutions and transfers under Article 280 for its award period, proposing a substantially larger total transfer compared with the previous commission and stating that no State, including Andhra Pradesh, saw a reduction in recommended transfers; once accepted by the Government, Finance Commission recommendations are applied uniformly across States and not implemented differently.