Jana Chaitanya Vedika (JCV), a non-governmental organisation, has demanded that the Centre review the terms and references of the 15th Finance Commission of giving weightage to population as per the 2011 census and also requested the southern States to have a coordinated action plan to ensure that they do not lose out financially.
The new Finance Commission, which will recommend on devolution of funds from Centre to States between 2020 and 2025, has mooted taking 2011 population census as the benchmark for deciding parameters of more funds disbursal as against the 1971 census and this would seriously bring down the quantum of funds to the South, considering low population growth and better socio-economic conditions.
At a press conference here on Tuesday, former Andhra Pradesh Chief Secretary Ajay Kallam, former High Court judge P. Lakshmana Reddy, economist M. Venkat Reddy and JCV chief V. Lakshman Reddy stated that the Centre and Finance Commission is, in a way, “punishing” the States, which performed well on the population control front instead of incentivising them.
Revenue growth
“It is unjust as this would directly affect the revenue growth and expenditure of the States increasing the deficit. Unless the south States wake up to this reality, they will lose out, especially with the lowest ever representation now in the Union Cabinet,” said Mr. Kallam.
He pointed out that the 14th Finance Commission had given scope for more funds disbursal to States like A.P., West Bengal and Kerala, for a period of five years, three years and two years, respectively, recognising the special circumstances apart from Special Category Status (SCS) to the north east.
“States will lose out ₹8,000 crore scaled up to ₹15,000 annually later on. While fighting for SCS is okay, this is also quite crucial,” the ex-Chief Secretary said.
“When we accepted population control measures as means for all-round development and south has done well, why should they be punished? Chief Ministers and economists should ponder over it while citizens should be made aware of the consequences,” said Justice (Retd.) Mr. Reddy.
‘Incentivise performers’
Economist Venkat Reddy called for providing some incentives to the States which did well on population control, female literacy and so on.
Jana Chaitanya Vedika chief Lakshman Reddy wanted the Telangana government to send its finance minister to the proposed conclave of south finance ministers called by the Kerala finance minister.
“The Centre or NITI Ayog should hold a meeting with all the Chief Ministers before finalising the new FC’s terms and references,” he said.
