A meeting of Finance Ministers of States began in Andhra Pradesh capital Amaravati on Monday with the conspicuous absence of Tamil Nadu and Telangana. Those from Mizoram, Meghalaya, Odisha and Sikkim too did not turn up. Karnataka, which is going to the polls, is represented by the expenditure secretary.
Tamil Nadu and Telangana had skipped the first meeting in Thiruvananthapuram, which was one of Finance Ministers from the southern States.
Subsequently, the conclave was expanded to an all India Finance Ministers meeting and many other States were invited to discuss the controversial Terms of Reference (ToR) of the 15th Finance Commission and finalise a memorandum to be submitted to the President of India.
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Andhra Pradesh Chief Minister N. Chandrababu Naidu said the Telugu Desam Party's fight on State-Centre relations resulted in the constitution of the Sarkaria Commission. The 1971 population census was taken as basis for devolution of funds following Andhra Pradesh’s suggestion to then Prime Minister Atal Behari Vajpayee.
If the 2011 census were considered, the representation of the South in Parliament would go down drastically as population would be criterion for delimitation. The ToR would amount to penalising the performing and progressive States. Underdeveloped States need a helping hand but not at the cost of progressive States. It would lead to “huge heartburn,” he said.
Kerala Finance Minister Thomas Isaac said Tamil Nadu and Telangana were agreeing to the cause in private but not openly.
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West Bengal Finance Minister Amit Mitra said, the ToR was undermining and diluting the provisions of the Constitution. He was referring to articles 284(4) and 275.
Andhra Pradesh Finance Minister Yanamala Ramakrishnudu hoped that the common memorandum would act as starting point for fresh thinking in regard to devolution in recognition of the growing reality of States being more than equal partners in development of the country.
A new paradigm for devolution must be established in the spirit of partnership between the Centre and the States, and not based on dominance of the former over the latter, he said.
Punjab's plea
Punjab Finance Minister Manpreet Singh said the State was contributing for surplus food gains though the land share was less. Industrial development took a beating due to incentives given in the neighbouring State. Goods and Services Tax (GST) had badly impacted revenues. “It is embarrassing to ask the Centre for funds. Punjab’s contribution to national development and security had to be taken into consideration,” he said.
Puducherry Chief Minister V. Narayanaswamy said that measurable performance was one of the terms of reference of the 15th Finance Commission. The States would agree to it, if measurable performance was applicable to the Union government too. He also called the Commission a quasi-judicial body. How can the Central government give ToR to it, he asked.
The Union government was adopting different parameters and approaches to Union Territories (UTs) with legislatures, he said. It was also adopting different yardsticks for different States. For instance, UTs were treated as States when it came to the implementation of the GST and considered it as UT while devolution of funds, he said adding, “I am unable to understand whether UT is man or woman or transgender.”
Deputy Chief Minister of Delhi Manish Sisodia said the devolution of funds was meagre to Delhi. The budget outlay was ₹807 crore 17 years ago. Now, it touched ₹53,000 crore. But, devolution of funds remained ₹327 crore for the last three years. “The Central government wants to take control of many subjects. Law and order is still under the Central government control. It is against spirit of the Constitution,” he said.