THIRUVANANTHAPURAM: In a first-of-its-kind initiative, the Finance Ministers of South Indian states that stare at drastic cuts in Central transfers in the wake of the terms of reference of the fifteenth Finance Commission will meet in the Kerala capital on Tuesday for a brainstorming session on the challenges ahead.
Finance Minister Thomas Isaac said on Monday, the Terms of Reference (ToR), besides eroding the finances of South Indian states because of their “better performance in population control”, also questions the fiscal federalism and principles of democratic governance.
The minister said his counterparts in Karnataka, Andhra Pradesh, Tamil Nadu and Puducherry would attend the meeting. Telangana has not confirmed its participation.Isaac said the mandate to use data based on the 2011 census for fund devolution, as against the 1971 census, would result in Kerala losing Rs 20,000 crore and Tamil Nadu Rs 40,000 in five years.
“While the population growth in Kerala between 1971 and 2011 is just 56 per cent, it is about 150 per cent in some northern states. We are not against higher allocations for backward states, but the distribution should be equitable and weightage should be given to efficiency,” he said.