Burden runs into burden... Mamata meets Modi

J.P.Yadav, TT, New Delhi, March 9: Narendra Modi today turned Mamata Banerjee's logic against her to refuse Bengal's demand for a moratorium on interest payments, contending that if she had inherited a financial burden from the Left, so had his government from the UPA.

The chief minister met the Prime Minister at Parliament House and said Bengal deserved a "debt relief and relief from interest payments" so it could fund development projects. She said the Left's 34-year rule had reduced the state to bankruptcy.

"You have inherited a large burden; we too have inherited a large burden," was the Prime Minister's reply, according to an exhaustive central government release that cited figures to suggest more funds are on their way to Bengal.

"The Centre and the states have to collectively find a solution," he added.

A Trinamul MP said Mamata later invited Modi to Calcutta. "He laughed and said he would come, but no dates have been discussed," the MP added.

Mamata and Modi had two rounds of talks in the afternoon. The first was a one-to-one meeting for 20 minutes in the Prime Minister's chamber at Parliament House.

The second, held in the conference hall of the Parliament library, was attended by 40-odd Trinamul MPs as well as Bengal finance minister Amit Mitra and chief secretary Sanjay Mitra.

Photo: PIB

Mamata refrained from saying categorically that Modi had rejected her demand but gave reporters a hint.

"The PM assured help. He said, 'We'll see how Bengal can be helped'," she said, adding that the Prime Minister had praised Bengal for improving its fiscal situation.

The Trinamul MPs who were at the meeting, however, said Modi had emphatically rejected Mamata's demand for debt relief, arguing it would open a Pandora's box, inviting similar demands from other states.

Modi had entered the conference hall looking cheerful but turned "serious" the moment Mamata voiced her demand, a Trinamul MP said. "He folded his hands and became serious."

The Prime Minister said the Centre too was cash-strapped and cited how Bengal was already being treated differently and had been given a grant to tide it over the burden of interest payment.

"In any case, the 14th Finance Commission has taken into account the interest burden on states and has fully compensated the revenue deficit arising as a result of this," the central government release said.

It said Bengal now had enough funds for development, citing how "West Bengal is getting an additional revenue deficit grant along with only two other non-special category states".

Sources said a Trinamul MP referred to the Bangladesh pacts but the Prime Minister said the issued would be discussed later. Another is learnt to have said that the coal royalty to Bengal was too little but Modi said it was much better than earlier.

According to the release, Modi reminded Mamata that Bengal would get a lot of money from the royalties on coal and other minerals apart from its share from the auction of coal blocks.

The release put the royalties at Rs 1,600 crore annually. "In addition, West Bengal will get Rs 11,200 crore from the coal blocks that have been auctioned so far," the release said. "West Bengal is better placed as compared to the past and has adequate funds to meet its development needs fully."

Modi assured Mamata that the pending funds under the rural job guarantee act - another of her demands - would be released by April 15.

Mamata did not appear happy with the Prime Minister's overall argument. "Bengal has the highest debt in the country. This is not because of our fault.... How will we build roads when we spend our revenue to pay interest?" she told reporters.

The chief minister tried to make the most of her Delhi visit by holding informal meetings with almost all the key ministers at Parliament House.

She reached Parliament more than an hour before her meeting with Modi and headed straight to Central Hall. She met finance minister Arun Jaitley, urban development minister Venkaiah Naidu, railway minister Suresh Prabhu, environment minister Prakash Javadekar and Lok Sabha Speaker Sumitra Mahajan.

When she mentioned the shortage of funds for the Calcutta Metro projects, Prabhu apparently said the states have to discharge their responsibilities. Mamata then asked for a separate meeting with him to discuss the Metro.

Trinamul stayed firm on opposing the two crucial bills on land acquisition and insurance.

The statistics cited by the central government release (the italicised sentences have been included by this newspaper):

Next five years

• The tax devolution in the next five years (2015-16 to 2019-20) will be around Rs 2,90,000 crore, compared to Rs 1,06,000 crore in the past five years. This is an increase of Rs 1,80,000 crore or 174%. (The figure should be Rs 184,000 crore).
• Bengal is getting a revenue deficit grant of Rs 8,449 crore in 2015-16 and a total revenue deficit grant of Rs 11,760 crore.
• Therefore, the total additional resources going to Bengal over the next five years (tax devolution and Finance Commission grants) will rise by Rs 2,05,900 crore, an increase of 174% compared to the last five years. (The figure will be Rs 195,760 crore, if only the tax devolution and the revenue deficit grant are added.)

Next year

• The tax devolution to Bengal in 2015-16 will rise by Rs 13,000 crore compared to 2014-15. It was Rs 25,340 crore in 2014-15 and is estimated to be Rs 38,461 crore in 2015-16.
• Bengal is getting a revenue deficit grant of Rs 8,449 crore in 2015-16. There are also grants to local bodies, which have almost doubled.
• If all these transfers are put together, on a year-to-year basis, the increase in resources to Bengal will be Rs 22,000 crore or 80% in 2015-16 compared to 2014-15.

Bengal's stand

On February 28, Bengal finance minister Mitra had said that most of the gains would be neutralised by the Centre's decision not to fund central schemes. Mitra said that the Centre had set aside for all states cumulatively 61.88 per cent of the total taxes for devolution of taxes and centrally sponsored schemes in 2014-15 and the figure would move up to only 62 per cent in 2015-16.

PARIBARTAN... OF GOVT PROSE

Mamata Banerjee has caused a seismic shift — in the manner in which media releases are drafted in Delhi.

The following statement, issued by parliamentary affairs and urban development minister Venkaiah Naidu’s office on Monday, is unusually candid and comes complete with the reproduction of a conversation in direct speech — a rarity in a government release on a courtesy call. The excerpts are reproduced verbatim: West Bengal Chief Minister Ms. Mamta Banerjee today met Parliamentary Affairs Minister Shri M. Venkaiah Naidu in his chamber in Parliament House.

Ms. Banerjee came to Shri Naidu’s chamber without prior information. At that time Shri Naidu was with Prime Minister. On receiving the message of Ms. Banerjee’s arrival to meet him, Shri Naidu returned to his office chamber.

Ms. Banerjee said “I am sorry I have come without prior appointment as you are my old friend”. Shri Naidu said: “You are my sister and you don’t need any appointment. You have the liberty of coming any time”.

Ms. Banerjee enquired about the ongoing proceedings in the Parliament.

She also discussed implementation of urban development projects in west Bengal….

The meeting lasted for 15 minutes.