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PM to meet state CMs, FMs on Wednesday

Prime Minister Atal Bihari Vajpayee has convened a meeting of chief ministers and finance ministers, of the nine states which had signed memorandum of understanding with the Centre for carrying forward fiscal reforms especially to deal with the burgeoning deficit, in Delhi on Wednesday.

The nine states are Rajasthan, Madhya Pradesh, Karnataka, Goa, Delhi, Haryana, Maharashtra, Punjab and West Bengal. The main purpose of the meeting will be to work out a comprehensive strategy to pull these states out of fiscal morass by toning up their tax administration and revenue mobilisation efforts.

The meeting is expected to prepare a time frame for carrying out fiscal reforms at the state-level, besides the schedule for release of Rs 110-billion non-plan revenue deficit grant recommended by the 11th Finance Commission in its interim report.

Finance Minister Yashwant Sinha has already made provisions for this Rs 110 billion in this year's budget.

The meeting would also work out methods for devolving 29 per cent of the central tax revenue without adjusting the amount generated through VDIS amnesty scheme.

PTI

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