Mamata meets PM Modi, raises WB debt problem

Subsequently, a delegation of MPs from the Trinamool Congress along with the Chief Minister met the Prime Minister.

During the meeting, Banerjee 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.

"PM agreed that West Bengal is under maximum debt and has shown financial discipline despite this. PM assured us he would look into it," Banerjee told reporters after the meeting.

Meanwhile, the Prime Minister, during the meeting, 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," Modi stated.

The Prime Minister said 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, a government statement said.

On the problem of debt, Modi said, "You have inherited a large burden. We too have inherited a large burden. The Centre and States have to collectively find a solution to this. 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. This is why West Bengal is getting an additional Revenue Deficit Grant along with only two other non-Special Category States. Therefore, interest burden should not affect development activities any more in future."

The additional financial resources being made available by the Central Government from the current fiscal onwards will substantially improve the position of the State to discharge interest liability and free up funds for developmental activities to boost growth, said he.

The Prime Minister also pointed out that, the Union Government has decided to give West Bengal the royalty on coal and other minerals. This will provide a benefit of ~ Rs 1,600 crore to the state annually. In addition, West Bengal will get Rs 11,200 crore from the coal blocks that have been auctioned so far and there will even more revenue in future.

On the issue of releasing funds under MNREGA, the Prime Minister assured that this scheme is fully provided for. West Bengal has already received Rs 3,744 crores this year andpending claims of ~Rs 1,500 crore will be settled in March itself.

Modi said that no stone will be left unturned for the development of West Bengal.