THIRUVANANTHAPURAM: The conclave decided to hold discussions on the memorandum in other states as well. If the Centre fails to conduct a dialogue on the issue, discussions on the ToR will be taken to the political domain.
Nationwide campaign on the anti-federal tendencies of the Central Government will be organised in association with non-BJP ruled states. Legal steps to challenge the violation of Constitutional provisions will also be explored.
What they said
ToR is a huge threat to the federal structure of the country. This is not a South Vs north debate but delves into the larger issue of Centre-State relations. There is a conscious attempt to cut short Central share. the provision in ToR to examine the tax devolution formula of 14th FC is unprecedented and illegal. In fact, the 10 pc hike in states’ share in net taxes did not benefit states as Centre’s contribution through a grant in aids and Centrally Sponsored Schemes were reduced. The demand to limit state’s fiscal deficit to 1.7 pc is unjustified.
Thomas Isaac, Finance Minister, Kerala
The terms of references in the 15th Finance Commission is an infringement on the federal system. We should not be persecuted for being the first state in foreign exchange revenue. We need more funds to prop up our agricultural sector. The 1971 census should be considered as the base for the fund allocation.
K M Mani, ex- fin minister
Puducherry should be brought under the purview of the Finance Commission. The ToR punishes best-performing states and rewards poor performers. Prime Minister says he believes in cooperative federalism. But through the ToR, the Centre has diluted the Constitution and takes away state’s powers.- V
Narayanasamy, Chief Minister, Puducherry