The Chief Minister of West Bengal, Mamata Banerjee, met the Prime Minister today in Parliament House. Subsequently, a delegation of MPs from the Trinamool Congress along with the Chief Minister met the Prime Minister. During the meeting, Chief Minister of West Bengal raised the debt problem that the state was facing, most of which was a result of the actions of past governments. This debt burden, leading to high interest payments, was affecting development expenditure in West Bengal. She asked for debt relief and relief from interest payments. She was also concerned about pending releases.
The Prime Minister explained that he is a firm believer in Cooperative Federalism. He has constantly been saying that only strong states can make a strong India and therefore, states must be strengthened to meet development needs of their people.
West Bengal and Kolkata have to develop, for their own sake, and for the benefit of the region. That is why we have the "Act East" policy. The region has talented people and a lot of resources. The Prime Minister stated that he is fully committed for West Bengal`s and Kolkata`s development. It is with this in view that the Central Government has agreed to devolve 42% of the divisible pool of taxes to states for the next five years. This is unprecedented and a rise from 32% which is the current share. In addition, the Central Government has accepted other recommendations of the 14th Finance Commission relating to Revenue Deficit Grants and other Grants. Among the large states, West Bengal is one the most important beneficiaries of this decision. The major benefits that come to West Bengal are: