Fifteenth Finance Commission mired in controversy

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The ruling BJP is continually seen as a celebration of North Indians in spite of all its efforts to create a Pan-India photograph and the controversy over the terms of reference of the fifteenth Finance Commission has simplest given credence to the sensation that it is a celebration of the Hindi speaking cow-belt. The modified population standards inside the 15th Finance Commission to keep in mind 2011 census for arriving at populace weightage for devolution of an important budget as opposed to the earlier practice of 1971 census will actually benefit North Indian states, that are ruled by way of BJP.

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Even a state like Gujarat, that is most of the leaders in industrialisation, has now not done that nicely while in comparison to a few of the southern states regarding social index and human aid development. This is due to the fact southern states in particular Kerala, Tamil Nadu and currently Karnataka have invested the big amount of cash in social improvement together with training and health resulting in population management. The demand for a separate Dravida Nadu has raised its ugly head once more in view this development. But that is true now not justified and southern states have to be in a function to clear up this trouble sitting throughout the table with the imperative authorities.

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There is, however, a few advantage and justification inside the argument placed forth by way of Kerala, Karnataka, Tamil Nadu, Andhra Pradesh and Telangana that they’re being punished and meted out a step-motherly remedy for having executed relatively an awesome process in social and human useful resource improvement in the beyond three-4 decades. To pinnacle it all, this comes at a time whilst budget of some of the southern states like Tamil Nadu and Karnataka had been hit because of GST rollout, which is a destination-based totally oblique tax benefitting extra the consuming states rather than producing states. Andhra Pradesh has yet any other grouse – denial of unique class status, promised as part of the economic package within the face of bifurcation into Telangana and Andhra Pradesh. The mishandling of a lot of these issues by way of the important authorities has contributed to the growing North-South divide and intensification of political protests in South India over the fifteenth Finance Commission.

The previous 14th Finance Commission had raised the share of states round 32 in step with cent offered by the Thirteenth Finance Commission. It had performed this by way of shifting allocations to some of the relevant initiatives to states. This is a welcome development within the feel states have extra autonomy in spending assets in a number of the tasks, which in any other case used to be strictly monitored by the then Planning Commission. Inefficient states did no longer get 2d and 1/3 tranches of the allocation for such projects launched without spending correctly the primary tranche within the exact centrally backed projects. This indirectly benefitted green and developed states, which were in Southern and Western regions. Implementation was once tardy in backward states, particularly in Uttar Pradesh, Rajasthan, Bihar and Madhya Pradesh and consequently social initiatives were no longer getting fully implemented there. As an end result, the states might continue to be backward.

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Now reports suggest that with more allocation by using the 14th Finance Commission these social improvement tasks still do not get bridging sales deficits. This cash gets diverted in meeting wasteful expenditure on subsidies like deliver of unfastened power and so on, The advanced states like Maharashtra, Gujarat, Tamil Nadu, Karnataka and Haryana, however, are glad about the elevated allocation giving them greater headroom and autonomy to enforce the social improvement tasks that used to come with strings attached in advance. This is but any other trouble that fifteenth Finance Commission will look at.

If southern states have done higher in social and human resource signs, it’s far due to the fact they are higher-administered states and the politicians are less corrupt and feature a few commitment to the humans. In the sharp evaluation, the management in backward states is susceptible and corruption rampant making implementation of developmental activities very tough. This precisely the reason for the states no longer making ok development. By starving price range to those states that are doing nicely, the Centre might best be dispensing poverty in place of redistribution of wealth.

So the grouse of southern states are justified and rightly Karnataka leader minister Siddaramaiah, DMK leader M K Stalin and Kerala finance minister Thomas Isaac were vocal on the problem and hence convened a meeting of southern states on April 10 to take the united stand at the pressing trouble. A hit containing population growth via difficult work cannot be punished with reduced allocations. If Northern states have finished badly in this score it’s miles due to the fact they have no longer spent the cash allocated to them accurately. Increased allocation to those north Indian states might tantamount to worthwhile inefficiency.

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According to V Bhaskar, who changed into the joint secretary of Thirteenth Finance Commission, Uttar Pradesh gains Rs 35,167 crore if 2011 populace census becomes taken into consideration, even as Andhra Pradesh will lose Rs 24,340 crore. Likewise, Bihar, Rajasthan, Madhya Pradesh profits Rs 32,044 crore, Rs 25,468 crore and Rs 14,735 crore respectively. Tamil Nadu, Kerala and Karnataka will lose Rs 22,497 crore, Rs 20,285 crore and Rs eight,373 crores respectively. This is exactly the purpose that right from 7th Finance Commission, the statutory frame is remitted to take 1971 population for computing kingdom’s percentage. Even Parliament seats are constant on those criteria. If the criteria are implemented to Parliament seats as nicely in destiny, then southern states may be an increasing number of marginalized, politically in addition to fiscally. Prime Minister Narendra Modi claims to be a votary of cooperative federalism and but the important government has asked fifteenth Finance Commission to recollect 2011 census without consulting states, especially southern states, which has a proper fear.