Bhubaneswar: The high-level panel of the 15th Finance Commission headed by its chairman that is in the state to hold discussions with different stakeholders of the administration, tax authorities and trade bodies Tuesday brainstormed on an array of issues.
The panel Tuesday held meetings with the representatives from the local urban bodies (ULBs) and panchayati raj institutions (PRIs), besides holding deliberations with the representatives of different trade bodies and political parties on fiscal issues in the federal tax flow.
According to officials in the know of the developments, the quasi-judicial body, which recommends the President on the matters related to utilisation of amount collected as taxes and its allocation between the Union and the state governments, emphaised on making the local bodies an integral part of the financial devolution. Meanwhile, people present in the meetings were of the opinion that the time is ripe for the third-tier government institutions to increase revenue opportunities for their viability.
The Commission, according to the Union government officials, was also concerned over the fact that levying of property tax is still not allowed and it opined that the issue deserved priority along with other measures to make the PRIs and ULBs self-reliant. The Commission was also of the view that the state has a bright potential given the political stability here and other factors.
The Commission, meanwhile, appreciated the good representation of women in the local bodies in the state, but expressed concerns over the moderate pace of growth in the manufacturing sector.
“The 15th Finance Commission had a detailed meeting with the representatives of the trade and industries representatives of Odisha. The Commission felt that it was ironic that though the state accounted for 72% of India’s mineral resources, the growth of the manufacturing sector in Odisha was moderate. This has resulted in fewer job creations,” claimed a release issued by the Union government after the meeting.