THIRUVANANTHAPURAM: With more and more non-BJP ruled states crying foul over alleged anomalies in devolution of Central funds, the Kerala government is hosting a fiscal conclave in Thiruvanathapuram on September 12 to discuss the approach towards the 16th Finance Commission. Tamil Nadu, Karnataka, Telangana and Punjab have confirmed their participation in the conclave.
“The commission has begun interactions with states. Kerala considers FC as an important avenue where the state can raise the demand for restructuring Centre-state fiscal relations. A united stand of the state governments on fiscal matters has become imperative and the meeting will help achieve this,” Finance Minister K N Balagopal told reporters on Thursday.
Chief Minister Pinarayi Vijayan will inaugurate the meeting, while Balagopal will preside over. Deputy Chief Minister and Finance Minister of Telangana Mallu Bhatti Vikramarka, Karnataka’s Revenue Minister Krishna Byre Gowda, Punjab Finance Minister Harpal Singh Cheema, Tamil Nadu Finance Minister Thangam Thennarasu, Kerala’s
Leader of Opposition V D Satheesan and the finance secretaries of the five states will also attend.
State to raise its demands before fin panel: Balagopal
The afternoon session will be attended by experts, including Arvind Subramanian, former chief economic advisor of the Union government, State Planning Board vice-chairman V K Ramachandran, former finance minister T M Thomas Isaac, former Union cabinet secretary K M Chandrasekhar, chief minister’s principal secretary K M Abraham, fourth State Finance Commission chairman M A Oommen, 12th Finance Commission member D K Srivastava, and economist Prabhat Patnaik.
Balagopal said the state government has begun steps to present its demands before the 16th Finance Commission. The government has taken various steps during the past one year, including the preparation of a memorandum and interactions with stakeholders at different levels.
“The Centre has a strained fiscal relation with state governments. There is wide criticism against the Union government for violating the spirit of cooperative federalism. The state government took strong action on these issues. The Cabinet, MLAs and MPs from Kerala staged a demonstration in Delhi seeking a correction in the discriminative devolution of tax share,” he said. Balagopal said Kerala had also questioned the unilateral decisions of the Centre on resource distribution before the Supreme Court.