CHENNAI: Representatives of parties including the AIADMK, DMK, CPM, DMDK and NCP on Wednesday pointed out various shortcomings in the terms of reference (ToR) of the 15th Finance Commission, which would seriously affect Tamil Nadu and urged the delegation, led by Commission chairman NK Singh to set right these unfair ToR immediately.
They urged the Commission not to penalise the performing States such as Tamil Nadu to which the chairman reaffirmed commission’s even-handed approach vis-a-vis States and the Centre. Industry representatives raised issues related to land acquisition, water availability for industry and agriculture and grid development for green energy.
Strongly opposing many of the terms of reference of the 15th Finance Commission, DMK spokesperson TKS Elangovan and party MLA PTR Palanivel Thiaga Rajan said the share of tax revenue to Tamil Nadu, which stood at 6.4 per cent in the 10th Finance Commission, had come down to just 4.03 per cent in the 14th Finance Commission.
The terms of reference of the present Finance Commission would drastically reduce the tax share to TN. “While the tax collection from Tamil Nadu is going up every year, the tax share given by the Centre has been coming down. So, the Commission should redraw the terms of reference and to adopt an innovative approach,” they added.
“How can an unelected body such as the Finance Commission have the power to review the status of finances of duly elected governments at the Centre and in States and recommend a fiscal consolidation roadmap? Keeping in mind the existence of Fiscal Responsibility and Budget Management Act (FRBM Act) at the Central- and State-level, what is the need for an additional review, leading to recommendations? So, this term of reference is unacceptable,” the memorandum submitted by the DMK said.