February 25, 2010 1:59 PM

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Govt accepts 13th Finance Commission recommendations

<br/>The Finance Minister, Mr Pranab Mukherjee has said that the major recommendations of the 13th Finance Commission have been accepted by the government. Talking to reporters after tabling the Economic Survey in Parliament, he said that the Commission has recommended 32 per cent of the net proceeds of the Union taxes to the States. It also recommended several grants-in-aid to the states, which total up to 3.19 lakh crore rupees. He said the Commission also provided specific grants to states for priority areas and local, urban and rural bodies will get, for the first time, a percentage of shares of union taxes. The Finance Minister welcomed the compensation for the states for implementing goods and services tax architecture, which is estimated to be to the tune of 50 thousand crore rupees. He said the Finance Commission also laid down a fiscal road map for the Centre and the States separately which will benefit the government. He said that the Economic Survey has captured the mood increased and projected growth and forecasts a GDP of around 8.5 per cent. He said the survey is special for two reasons, the unusual years of economy and making the finance ministry a laboratory that provides new ideas and foundations for policy initiatives in the medium term.<br/>

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