‘Southern States to lose Rs.80,000 Cr due to 15th Finance Commission terms’

By   |  Published: 23rd Apr 2018  6:15 pm

Vijayawada: The provisions in 15th Finance Commission pose a threat to federal democratic system and cause huge loss to States, according to Kerala Finance Minister Dr TM Thomas Issac.

Speaking to media persons here on Monday, he said that the southern States alone would suffer a loss of Rs 80,000 crore through 15th FC recommendations. The Central Government was trying to grab the powers of state govt through FC, he alleged and opined that the States should have economic freedom without Centre’s interference which is detrimental to their interests.

“The finance ministers’ conclave scheduled to be held in AP on May 7 will discuss and debate on the issue extensively and take a decision.

Finance Minister of AP Yanamala Ramakrishnudu will submit a memorandum to the Centre after the conclusion of the conclave. The finance ministers of several states have come forward to attend the conclave and they are trying to garner the support of other states too,” he said.

Isaac said that the Centre’s attitude to grab the states powers through finance commission would be made as a debating topic in Karnataka elections where the main aim is to defeat the BJP in the elections.

He said that the States which are performing well would be at a loss as the Centre was contemplating release of funds on basis of 2011 population. When the Tamil Nadu Government submitted a memorandum to the Centre on the loss caused by 15th FC recommendations, the Prime Minister made a promise to compensate the loss through special incentives, he pointed out.

The Kerala Minister said that the Centre was trying to reduce the permit of loans of State governments by reducing he FRBM from existing 3 per cent to 1.7 per cent. It was attempting to take control of States through 15th FC,he alleged. He also held the Centre responsible for abnormal increase in prices of petrol and diesel. The Centre had increased the tax on petrol abnormally while no State hiked the tax on petrol. If the Centre reduced the tax, the price of petrol would automatically would come down, he stated.