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States should use additional funds for infrastructure: PM

States should use additional funds for infrastructure: PM

New Delhi: Prime Minister Narendra Modi on Wednesday suggested that additional funds and resources at the disposal of states should be directed primarily towards nation building, an official release here said.

At a meeting with 35 first-time Maharashtra MLAs, who called on him at the Parliament House here, Modi highlighted the union government's initiatives towards cooperative federalism.

The prime minister said states have been allocated 62 percent of the total resources in the union budget, while only 38 percent have been left for use by the Centre, the release added.

He also spoke about the central government's acceptance of the recommendations of the 14th Finance Commission regarding devolution of 42 percent of the divisible pool of taxes to states.

He said that the states would also benefit from the proceeds from the coal auctions and the enhanced mineral royalties.

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