New Delhi, Feb 25 (IANS): Himachal Pradesh BJP MP Anurag Thakur Wednesday thanked Prime Minister Narendra Modi for the enhanced grant of Rs.40,625 crore to the revenue deficit hill state as recommended by the 14th Finance Commission.

"The prime minister is aware of problems faced by the hill states and therefore even if it meant the straining of its own finances, the central government has accepted the recommendations of the 14th Finance Commission in letter and spirit," he said in a statement.

The hill state received the grant out of the Rs.1.95 lakh crore allotted to 11 revenue deficit states.

Thakur said the 13th Finance Commission had recommended states' share in central taxes at 39.5 percent but the then UPA government scaled it down to 32 percent.

"Now the Modi government has decided to hike this to 42 percent. Never before has it happened that states' share has been increased by 10 percent."

The three-time MP said under the 14th Finance Commission only Jammu and Kashmir has obtained enhanced assistance more than that of Himachal Pradesh.

"Out of the total grant, Himachal Pradesh is scheduled to get Rs.8,009 crore this year (2015-16) itself," he added.