States made into civic bodies: Kerala Finance Minister

Vijayawada: Strongly demanding the revision of the Terms of Reference (ToR) of the 15th Finance Commission, Kerala Finance Minister TM Thomas Isaac said here on Monday that the Centre wants to turn the States into glorified municipalities.

He was here to discuss with Andhra Pradesh Finance Minister Yanamala Ramakrishnudu about the forthcoming conclave of the State Finance Ministers to be held on May 7.

Speaking to the media, Thomas Isaac said that the State of Andhra Pradesh has taken initiative to invite the finance ministers of various   states to the conclave. ``The AP Finance Minister had already contacted Delhi State Government, Punjab, Odisha and Mizoram,’’ he said and added that Telangana and Tamil Nadu would also be invited to join the conclave.

Isaac said that there would be wider scope for discussion in the conclave. Referring to the Terms of Reference of the 15th Finance Commission, the Kerala Finance Minister said that the Centre is contemplating to reduce to the devolution of funds which would dilute the financial position of the States.

He took strong exception to the attempt by the Centre through the Finance Commission to reduce the borrowing power of the states. “This would affect the economy of all the States,” he averred. In effect, with the ToR of the 15th Finance Commission, the southern states are going to lose Rs 80,000 crore, he added.

Ridiculing the contemplation of incentivisation by the 15th Finance Commission, the Kerala Minister demanded devolution of ‘untied’ funds to the States. ``Funds should be devolved equally among the States and the Centres,” he added.

Taking strong exception to the comment on populist schemes of the States, Thomas Isaac said that as to what the Finance Commission got to do to decide which is populist scheme? Referring to the mid-day meal scheme started in the States which was termed as populist scheme, he pointed out that it is now the Central government programme. 

He also did not agree to the devolution of funds based on 2011 Census.  He hoped that that Tamil Nadu would realise the gravity of the issue and attend the conclave. “It is no longer merely an academic issue to discuss but a political issue,” he pointed out.