Kerala will host a fiscal conclave of five Opposition-ruled States in Thiruvananthapuram on September 12 to address critical issues related to Centre-State financial relations and tax devolution amid the ongoing deliberations for the 16th Finance Commission.
The conclave, which will be inaugurated by Chief Minister Pinarayi Vijayan, will involve the participation of Ministers from Tamil Nadu, Karnataka, Telangana and Punjab. The conference is being viewed as an effort to bring together Opposition-ruled States to strengthen their bargaining position with the Centre.
Addressing a press conference here on Thursday, Finance Minister K.N. Balagopal emphasised the strategic importance of the conclave, saying that it comes at a crucial time when the 16th Finance Commission has begun engaging with States.
“Kerala views the Finance Commission as a vital platform for advocating the need to overhaul Centre-State financial relations. The primary goal of the conference is to address and formulate a unified stance on development and financial challenges faced by States and to present these concerns to the Finance Commission,” he said.
Telangana Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka, Tamil Nadu Finance Minister Thangam Thennarasu, Karnataka Revenue Minister Krishna Byre Gowda, and Punjab Finance Minister Harpal Singh Cheema have confirmed their participation. Leader of the Opposition V.D. Satheesan is also expected to take part in the conclave.
The Finance Secretaries of the five States will also participate in the programme.
The distinguished line-up of experts who will speak in the subsequent sessions include former Chief Economic Adviser to the Union Government Aravind Subramanian, Kerala State Planning Board Vice-Chairperson V.K. Ramachandran, former Finance Minister T.M. Thomas Isaac, former Union Cabinet Secretary K.M. Chandrasekharan, and economist Prabhat Patnaik, among others.
Mr. Balagopal stressed that the conclave is being organised at a time when economic federalism in India was under significant strain. He pointed out that States were responsible for 62.4% of the country’s public expenditure, but received only 37.3% of total revenue, while the Centre retained about 63%. The exclusion of cess and surcharge from the revenue-sharing pool has led to substantial revenue losses for the States.
Besides, the 15th Finance Commission’s recommendation to allocate 41% of Central revenue to States was not fully implemented, resulting in States receiving only about 29.6% due to the high levels of cess and surcharge. He also criticised the recommendations of the 15th Finance Commission for disproportionately affecting Kerala and other States, reducing Kerala’s recommended share from 3.875% by the 10th Finance Commission to 1.92%.
Published - September 05, 2024 07:53 pm IST
