Staff Reporter

KOLLAM: The Kerala NGO Union has called for the reorganisation of the Centre-State financial relations. This call was through a resolution adopted on Saturday at the 46th district conference of the NGO Union. The resolution stated that the Centre had de facto taken control over all prime revenue sources like the income tax, customs and excise, but states have more responsibilities to perform when it comes to administration. Yet the Centre is not prepared to justifiable share its revenue with the States. And it is a fact that the states have limited revenue sources. The resolution alleged that the Central Finance Commission was following the path of the Centre on this issue.

The Centre was slashing the tax on the upper strata of the society and this in fact had reduced the revenue of the Centre. The states are feeling its repercussions since the Centre on those grounds had curtailed allocations to the states. This was the prime reason why the Finance Ministers from the States had called upon the 13th Finance Commission for a complete overhaul of the Centre-State relations.

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