Chief Minister stresses on the need of cooperative federalism to strengthen judiciary, requests for desired cooperation from the centre to the state government for judicial administration
The state getting only a fiscal space of Rs. 7585 crore as state share from central taxes in the current fiscal 2015-16
An additional burden of Rs. 8,500 crore or more likely on the state government for which no fiscal space is available with the state government
It is extremely difficult for the state government, from its limited resources, to make available complete funds for the judicial system for the next five years on the recommendations of the 14th Finance Commission
Uttar Pradesh Chief Minister Mr. Akhilesh Yadav has requested Prime Minister Mr. Narendra Modi to extend the desired cooperation in the spirit of federal cooperation, to the state for judicial administration in the state.
In this context he has referred to PM’s letter dated April 23, 2015 through which it has been expected from the state government that it would extend adequate funds for the fiscal space being provided to the state government by increase in the central allocation for the financial year 2015-16, so that the judicial system could be strengthened as per the recommendations of the 14th Finance Commission. In his letter to the Prime Minister, Mr. Yadav has said that based on a 15 per cent normal increase calculated on Rs. 75,416 crore central taxes in the financial year 2014-15, the central share in the 2015-16 state budget is Rs. 86,289 crore while in context of the 14th Finance Commission recommendations, the sum fixed in the union budget for this purpose is Rs. 94,314 crore. Therefore, in real terms the state is only getting a fiscal space of mere Rs. 7,585 crore as state share in the central taxes for the year 2015-16.
Mr. Yadav has also pointed out that the central government either de-linked many schemes from the budget or no funds have been earmarked for them. With this, no recommendations made for assistance, subsidy/special problem subsidy, as recommended by the 13th Finance Commission would not be given now. Therefore, the state would be devoid of Rs. 9,500 crore in the year 2015-16 and the available fiscal space of Rs. 7,585 crore would be assimilated in these two heads. The Chief Minister in his letter has also said that the union government in its centrally sponsored scheme for year 2015-16, as against 2014-15 has slashed it by 44%. Due to this cut in the central share, the state governments will have to manage them through its own financial resources.
And so while the picture is not entirely clear as of now, the estimated burden on the state government is expected to be around Rs. 8500 crore or more and there is no fiscal space available with the state government. The situation is likely to aggravate if in the union budget of 2015-16, the actual receipts of the state’s expected share of Rs. 94,314 crore is lesser, as has been the experience in the past. Therefore, in this context, the Chief Minister has requested that keeping in view the limited resources of the state and the recommendations of the 14th Finance Commission providing funds for the judicial system for the next five years will not be possible without the support of the Government of India.
Mr. Akhilesh Yadav has also referred to the verdict of the Hon’ble Supreme Court of India of SCC 502 (2012) of April 19, 2012 of Mr. Brij Mohan Lal Vs Union of India and others that both the state and the centre shall equally bear the expenses of strengthening the judicial systems in the state.
The Chief Minister had hence expected full and desired cooperation of the GoI to the state in strengthening judicial administration in the spirit of cooperative federalism.