Telangana was among the first States to flag the issue of incentivising the progressive States and give them greater allocation of funds to continue to contribute to the nation’s economy, but it is not in favour of giving Southern States Vs Northern States spin.
Chief Minister K.Chandrasekhar Rao did mention in the recent weeks that the State contributed about ₹50,000 crore in terms of tax to the Centre but got about ₹24,000 crore in return. Finance Minister Eatala Rajender raised concerns about the Terms of Reference (ToR) of 15th Finance Commission, particularly the proposal to take 2011 census as the basis for devolution of funds to the States instead of 1971.
Several southern states have voiced their opposition to the ToR, arguing that it will end up penalising them rather than rewarding them for their achievements in controlling population growth, bringing down infant and maternal mortality rates and doing relatively well in human development indices.
However, Telangana is not in favour of drawing battle lines between Southern and Northern States as some States are attempting to do, the government sources said.
That is apparently the reason Telangana Finance Minister chose to stay away from the meeting of Finance Ministers of Southern States held recently at Thiruvananthapuram.
Several States across the country like Gujarat, Haryana, too achieved better growth and some North Eastern States too have less population. It is not as if Southern States alone are developed and grouping the Southern States as one block will send wrong signals to people in other parts of the country, some senior officials said.
Mr. Chandrasekhar Rao was on record in the recent Budget session that he was against the idea of South and North divide as it would go against the spirit of national integration.
“The institution of Finance Commission has a formidable reputation of nurturing the spirit of cooperative fiscal federalism and successfully adjudicating the claims of the Centre and States in a fair and equitable manner. Telangana will represent its views and case to the Commission,” sources explained.
The State is working on its memorandum to the 15th Finance Commission and departments like Panchayat Raj, Municipal Administration, Finance will give separate reports. A preliminary meeting of Finance Commission Secretary was held with secretaries of Southern States in Hyderabad in March.
The Finance department will submit a detailed report about its income and expenditure in the last five years, its debt burden, capital expenditure, benefits expected to be accrued to the State. State will also seek direct devolution of funds to mandals and zilla parishads apart from panchayats.
It would also seek special assistance as majority of its population belonged to downtrodden and weaker sections.
The Commission is expected to come to the State in August/September this year when it would listen to the concerns of the State. The 15th Finance Commission’s award would come in November, 2019, said sources.
