Ensure fairness, equity in devolution of resources: Vijayan

Thiruvananthapuram: Kerala Chief Minister Pinarayi Vijayan on Sunday reaffirmed the state's demand to reframe the Terms of Reference (TOR) of the 15th Finance Commission to ensure fairness and equity in the matter of devolution of resources to the states.

Speaking at the fourth meeting of the Niti Aayog Governing Council in New Delhi, he reiterated the state's apprehensions and concerns on the ToR of the Commission. 

Vijayan said the state's development efforts have been constrained by changes in the funding pattern of the Centrally Sponsored Schemes (CSS).  

"The changes have increased the state's contribution to CSS, resulting in shrinking the fiscal space of the state", he added. "Cooperative federalism can be achieved only if States are equal partners in the development process', an official release here quoted him as having said.

Vijayan said introduction of GST has limited the freedom of states to raise financial resources and that though there were expectations of buoyant revenue growth, as Kerala is a consumption-oriented State, there have been substantial revenue losses.  "We are still dependent on compensation", he added.  

Despite fiscal constraints, the state has undertaken several initiatives to improve the life of people, Vijayan said and listed out various schemes initiated by the CPI(M) led LDF government that came into office in May 2016.