Modi Accepts Finance Commission's Record Hike In States' Share
"Beyond this 42 per cent and the grants to states for strengthening gram panchayats and municipal bodies, an additional amount has been allocated for 11 states that will still be revenue deficit after devolution," Finance Minister Arun Jaitley told reporters in New Delhi.
"The big among these deficit states have been identified as Andhra Pradesh after division, Assam, Jammu and Kashmir, Himachal Pradesh and West Bengal while the smaller ones include some northeastern states like Manipur and Nagaland," he added.
After assessing the revenue and expenditure of the states for the period 2015-20, the commission has recommended a grant of 
1.94 crore to meet the deficit of these 11 states.
"The higher tax devolution will allow states greater autonomy in financing and designing of schemes as per their needs and requirements," the report said.
"The consequence of this much greater devolution to the states is that the fiscal space for the centre will reduce in the same proportion," it added.
"States cannot become dependent on the Centre, while the command and control system of the past cannot work. It is this spirit of cooperative federalism that has underpinned the constitution of the NITI Aayog," Jaitley said.
"In the past, when Finance Commissions have recommended an increase, it has been in the range of 1-2 percent," he added.
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