Prime Minister Narendra Modi Inaugurates the Inter-State Council in New Delhi Saturday July 16,2016

Inaugurating the Inter-State Council, Prime Minister Narendra Modi said here on Saturday the total amount received by states from the Centre during 2015-16 was 21 per cent higher than the amount received in 2014-15. 

He said, similarly, panchayats and urban local bodies would receive Rs. 2.87 lakh crore during the period of the 14th Finance Commission, which is substantially higher than last time. 

Addressing chief ministers and Lieutenant-Governors, he said the Inter-State Council is an inter-governmental forum that can be used for evolving policy as well as ensuring its implementation. "I, therefore, urge the States to increasingly use this forum as an effective instrument to strengthen our democracy, our society and our polity," Modi said. 

"The nation can progress only if the union and state governments walk shoulder to shoulder. It would be difficult for any government to successfully implement a scheme on its own. Therefore, provision of adequate financial resources is as important as the responsibility for implementation," Modi added. 

Modi said the rights of States have been kept in mind, even in revenue received from the auction of natural resources. Auctions of coal blocks will yield Rs. 3.35 lakh crore to states in the years to come. "Auctions of other mines will yield an additional Rs. 18,000 crore to states. Similarly, through amendments to the CAMPA Act, we are attempting to free up about Rs. 40,000 crore lying idle in banks, for disbursal to states," the PM said. 

He said the Centre will provide 5 crore new cooking gas connections over the next three years. "If all states decide to reduce kerosene consumption by 25 per cent, and actually do so, they can receive about Rs. 1,600 crore as grant this year," Modi said. 

Pitching for Aadhaar and direct cash transfers, he said the simple Aadhaar card has become a symbol of empowerment. "Benefits now flow only to people genuinely entitled to receive them, with money getting directly credited to their bank accounts. This has not only brought in transparency, but also resulted in savings of thousands of crores, which is being utilised for development," Modi added.