PM asks Finance Commission to reward states that worked to control population
Summary
Prime Minister Narendra Modi took to Twitter to pacify the protesting states.
Prime Minister Narendra Modi on Thursday asked the 15th Finance Commission to incentivise the states that have worked to control population after south Indian states strongly opposed the terms set by the constitutional body to divvy up revenues.
The Union Government has suggested to the Finance Commission to consider incentivizing States who have worked on population control. Thus, a state like Tamil Nadu, which has devoted a lot of effort, energy and resources towards population control would certainly benefit: PM
— PMO India (@PMOIndia) April 12, 2018
The Prime Minister’s statement comes as states such as Karnataka, Kerala and Andhra Pradesh, among others, have accused the central government of being partial towards states from the north. The chief ministers and political parties of these states said the southern states that have diligently followed population control and development policies and are therefore in a better position than the rest of the country receive lower revenue share compared with northern states.
The bone of contention for the southern states is the terms of reference that the 15th Finance Commission has set. According to these terms, the 2011 Census – and not the 1971 Census as has been the norm – has been set as the base year to determine how revenue is divided.
Southern states fear that the new base year will harm their interests.
The BJP, which leads an alliance to run the central government, has been elected to power in several north Indian states.
On Thursday, Modi denied that his government was biased against the southern states, and said these were baseless allegations.
Earlier, Karnataka chief minister K Siddaramaiah opposed the terms of reference of the Finance Commission and asked the southern states to oppose it. “This will further affect the interests of the south, we need to resist,” Siddaramaiah tweeted.
He also asked chief ministers of Kerala, Tamil Nadu, Andhra Pradesh, Telangana, Maharashtra and Puducherry to resist the move by the commission.
On Tuesday, finance ministers and officials from Andhra Pradesh, Kerala and Karnataka and Puducherry met in Thiruvananthapuram to strongly oppose the terms of reference. Andhra Pradesh finance minister Y Ramakrishnudu had said the Centre arbitrarily decided the terms of reference for the new policy, without consulting state governments.
Kerala chief minister Pinarayi Vijayan said it’s time states stood together to demand recasting the terms of reference, as it was necessary to save the federal structure of the Indian Union.
On Wednesday, Kerala finance minster Thomas Isaac told NDTV the South will lose Rs 80,000 crore under the new Finance Commission.
Karnataka agriculture minister Krishna Byre Gowda said all states that performed their duty of bringing down the population in their respective jurisdictions were set to lose out because the plan is to shift the base from 1971 to 2011 Census.
With elections in Karnataka fast approaching and a storm of protests raging in other states, only higher revenues to southern states could defuse the tension.
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