Special Correspondent

Thiruvananthapuram: Law Minister M. Vijayakumar has called for recasting the Centre-State relations. Inaugurating a seminar on “The financial relations between the Centre and the States and Kerala’s development” organised as part of the second State conference of the NGO Union here on Monday he said that it was necessary for the growth of democracy and for removing the ill effects of globalisation.

He contended that the States’ powers were limited though the country’s Constitution was federal in nature.

This inequality between the Centre and the States was the biggest obstacle to Kerala’s development.

‘Poor share for Kerala’

Noted economist M.A. Oommen pointed out that the State’s share from the Planning Commission for the last 25 years was less than the national average.

The Centre had the duty to make good the huge loss suffered by Kerala due to the agreements reached with various countries by the Centre.

He charged the Centre with interfering with the administration of the local bodies and the States through Centrally sponsored schemes.

It was against the spirit of the federal character of the Constitution.

In the sixties, the Centre used to give as Central assistance an amount equal to 30 per cent of the revenue expenditure of the States under the Gadgil Formula. But the revenue expenditure had registered a steep increase since then, while the Central assistance had come down considerably.

The president of the NGO Union, K.P.Mary presided over the function.