Kerala wants a bigger slice of central tax pie

The Cabinet will urge the NDA Govt to increase the state’s share of central taxes from 42 percent to 50 percent.

Published: 17th May 2018 03:47 AM  |   Last Updated: 17th May 2018 03:47 AM   |  A+A-

The Kerala Cabinet decided to urge the Centre to increase the state’s share of central taxes from 42 per cent to 50 per cent.

By Express News Service

THIRUVANANTHAPURAM: Kerala has urged the Central Government to increase the state’s share of central tax from 42 per cent to 50 per cent. The Cabinet on Wednesday issued its nod for the proposals and recommendations to be submitted before the 15th Finance Commission with respect to its terms of reference. The state expressed concern over many proposals in the Commission’s terms of reference. The proposal on devolution of taxes based on the 2011 census will have adverse impact on Kerala. The state will demand that tax devolution should be based on 1971 census. 

The government is of view that criteria for tax devolution should be in such a way that there is no decrease in the tax share proposed by the 14th Finance Commission.Also, the state felt that proposal to review norms for issuing grant — to address revenue defcit — should be withdrawn. Otherwise, the state will have to cut down its expenditure on capital development. 

The Cabinet decided to urge the Centre to increase the state’s share of central taxes from 42 per cent to 50 per cent. The government is committed to maintaining fiscal deficit at 3 per cent of the state’s internal revenue. The proposal to fix fiscal deficit as 1.7 per cent of the GSDP will have adverse impact on Kerala. Therefore, there should not be any change in the existing norms. The state will also demand that special grant be given for projects on coastal protection, relief for rubber farmers, forest protection, welfare schemes for NRKs and skill development. 

Amendments proposed
The state government has proposed major amendments to the Indian Penal Code (IPC) and Code of Criminal Procedure (CrPC) to impose strict punishments to attacks on government employees, their families, political parties and charity organisations. The state proposes to impose stricter penal action for attacks on government employees and their families, destruction of office and assets of political parties and registered social organisations. The Cabinet on Wednesday approved the draft bill to bring in amendments to CrPC and IPC in this regard.  

One of the amendments pertain to imprisonment up to 3 years for deliberate attacks on family members of government employees. Imprisonment of up to 10 years should be given for inflicting severe injuries.
Also the amendment proposes jail term for up to 5 years for destroying the property of political parties and NGOs. An imprisonment up to five years is proposed for destroying the property of government employees and their families. The amendments also proposes to impose fine on all these cases.


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