Karnataka opposes terms of reference of 15th Finance Commission

by news
April 6, 2018

Bengaluru: Minister for Agriculture Krishna Byre Gowda said the State will participate in the meeting of Finance Ministers of southern States convened by Kerala to discuss about the common fears that most of these States share over the terms of reference (TOR) fixed for the 15th Finance Commission.

He said that several southern States had come out against the finance commission’s TOR, including the decision to adopt 2011 census data as the basis for devolution of funds to States.

“Based on what will emerge from the meeting, we will take a call on the future course of action. We will also write to the Centre demanding that the terms of reference be amended,” the minister said.

“The disquiet amongst progressive States, which contribute proportionately higher tax revenue than they receive in return, has only increased since the Central government altered the devolution formula through the TOR, which have been framed unilaterally without consulting the States,” he said. “The TOR are against the Constitution. They will force the finance commission towards decisions that penalise progressive and better performing States, thus affecting progress and performance,” he explained.

According to the TOR, if the 2011 census data is adopted, the share that southern States, most of which have been highly successful in adopting birth control measures compared with their counterparts in the north, would lose heavily in terms of resource allocation.