Tamil Nadu and other southern states say it is only 1971 census that must be considered
Kerala will host the crucial southern states' conclave today on the controversial new yardstick of the 15th Finance commission, under which they expect a huge drop in their share of tax revenue from the Centre. Under the new terms of reference,
southern states, all with non-BJP governments, will get a smaller share because their population has reduced - an accomplishment, for which, they say they should be rewarded, not penalised.
Though Kerala Finance Minister Thomas Issac told reporters that leaders of all the invited southern states have confirmed their presence, except for Telangana, leaders from Tamil Nadu too will not be present at today's meet.
Calling the new Terms of Reference "undemocratic" and an "attack on the federal structure", Mr Issac said making 2011 the base year instead of 1971 is unacceptable. "Kerala's population has grown only by 56 per cent in that interval, but several states in the Hindi heartland had their population rise more than 150 per cent. And they will be the beneficiaries of the new ToR, rather than us," Thomas Issac said.
The tax revenue received by the Centre is divided among states every year under a system based on population, which is decided by the Finance Commission. So far, the census data of 1971 was being used as the crucial parameter, but the 15th Finance Commission headed by NK Singh, used the census of 2011. This will drastically reduce the share of southern states, which have successfully controlled their population, while giving a bigger chunk to states like Bihar and Uttar Pradesh on basis of their larger population.
Clarifying that he was not against sharing with backward states, Mr Issac said: "I am not against equity. But shifting the base year as 2011 is literally making this into a backwardness formula. That's why southern states are demanding that efficiency has to be rewarded too."
Tamil Nadu will be the worst hit state -- with a loss of over Rs 40,000 crore, while Kerala expects to lose around 16,000-20,000 crores, the minister said.
Southern states have also slammed several other parameters - including the demand for reducing fiscal deficit to 1.7%, calling it "squeezing the fiscal space of states". Cutting across the political divide, leaders from Tamil Nadu - including chief minister E Palaniswami and
opposition DMK's MK Stalin - have criticized the finance commission's decision. Karnataka Chief Minister Siddaramaiah added his voice to the protests and Kerala speedily announced the conclave.
Last week,
top BJP strategist Ram Madhav met NK Singh as dispute brewed between the Centre and the four southern states, which demanded that the 1971 census be used instead of the 2011 data. Party sources had assured that measures will be taken to ensure that southern states do not suffer.