Finance Minister Yanamala Ramakrishnudu said on Wednesday his counterparts from the southern States would discuss the need for the 15th Finance Commission to strike the right balance in devolution of funds, the impact of the Central government’s retention of veto power in the GST Council, which is dominated by the Finance Ministers of the BJP-ruled States, and other issues jeopardising the fiscal relations between the Central and the State governments, at a meeting scheduled for April 10.
Participating in a discussion on the 2018-19 Budget Appropriation Bill in the Assembly, Mr. Ramakrishnudu said attempts to demolish the federal system were evident from the “imprudent manner” in which funds were devolved and the Centrally-sponsored schemes imposed on the States, and from other unjustifiable actions of the Central government.
Mr. Ramakrishnudu said many States had been requesting the Central government to take the 1971 Census as the benchmark for devolution of funds by the 15th Finance Commission instead of the 2011 population but there had so far been no response. He observed that States like Andhra Pradesh (A.P.) which went for family planning would be at a disadvantage compared to those having higher rates of population growth.
Various other matters that reduced cooperative federalism to a myth were raised at various forums but the Central government was apparently in no mood to make the necessary course corrections, he asserted.
Mr. Ramakrishnudu said A.P. was demanding its rights but not standing at the Central government’s doorstep with a begging bowl.
He questioned what respect did the Central government have for the institutions of the Comptroller and Auditor General, the Reserve Bank and the NITI Aayog which pegged A.P.’s revenue deficit at more than ₹14,000 crore, which more or less tallied with the State’s claim of ₹16,000 crore.
He said the fiscal deficit stood at ₹29,000 crore as on date. Andhra Pradesh was the only State that had spent ₹4.75 lakh crore in 2015-16, 2016-17 and 2017-18 which was more than the three years’ budget of approximately ₹4,05,740 crore. Capital expenditure accounted for a sizable chunk at about ₹65,000 crore during the period. This year, the State would exceed the ₹1.90 lakh crore-plus budget by about ₹10,000 crore in spite of the constraints.
The outstanding debt stood at ₹1.06 crore calculated on the basis of population, he said and demanded that the Centre should resolve the said issues with the desired urgency.
