States would intensify their protest: CM

By Our Special Correspondent

THIRUVANANTHAPURAM, AUG. 23. The Chief Minister, Mr. E. K. Nayanar, has said that the Chief Ministers of various States would intensify their protest if their complaints about the award of the 11th Finance Commission are not settled.

Mr. Nayanar, who returned from Delhi on Tuesday after attending a meeting of Chief Ministers convened by the Andhra Pradesh Chief Minister, Mr. N. Chandrababu Naidu, told presspersons here today that they would meet again to discuss further course of action if the final report of the Finance Commission did not make up for the shortfall in the devolution of funds to the States in the interim report.

The Commission told the Chief Ministers that the entire amount calculated on the basis of devolution of 37.5 per cent of the Central revenues to the States had not been divided among the States. A sum of Rs. 22,000 crores was remaining.

The Commission would consider the issues raised by the States when recommending division of this amount. Mr. Nayanar said Kerala had submitted a separate memorandum to the Prime Minister highlighting issues specific to Kerala in addition to the joint memorandum submitted by the Chief Ministers. The joint memorandum was drawn up by consensus. A clause had been added, as desired by Kerala, that special assistance to States which gave importance to decentralisation should be considered.

He said Kerala's memorandum to the Prime Minister and the Union Finance Minister had pointed out that Kerala would be losing Rs. 3,664 crores in five years as per the 11th Finance Commission's award.

As per the award of the 10th Finance Commission, Kerala had received 3.41 per cent of the total funds devolved to the States. Under the award of the 11th Finance Commission, this dropped to 2.83 per cent.

He said the Commission had specified a maximum of 37.5 per cent of the revenues as the amount that could be devolved to the States. This recommendation was beyond the terms of the Commission.

He said the weightage given by the Commission to various criteria for arriving at the share of Kerala had worked to the disadvantage of Kerala. The reduction in weightage for criteria such as population and increase in weightage for criteria such as area had caused losses to the State. Kerala had been penalised for its achievements in various spheres. No consideration was given for the fact that the State had transferred 40 per cent of its revenues to the local bodies.

Send this article to Friends by E-Mail

Section  : Southern States
Previous : Bonus and festival allowance: Staff to get last
           year's rates
Next     : Sexual exploitation: Central team coming