PM Narendra Modi at a function in Chennai, where he had gone for a day's visit.
States which have successfully controlled their population may get an incentive, Prime Minister Narendra Modi indicated today, breaking his silence on the parameters of the 15th Finance Commission that triggered a
huge controversy in the southern states. Tamil Nadu, where the Prime Minister was speaking, was the first state to flag the issue.
"A baseless allegation is being made about the Terms of Reference of the 15th Finance Commission, being biased against certain states or a particular region," the Prime Minister said at a programme he was attending in Chennai. The government, he said, has suggested to the Finance Commission to "consider incentivizing" states that have worked on population control.
"Thus, a state like Tamil Nadu, which has devoted a lot of effort, energy and resources towards population control, would certainly benefit," the Prime Minister added.
The southern states -- all ruled by non-NDA parties -- fear that because of the new parameters, they would get a far smaller share of tax revenue distributed by the Centre, compared to states like Bihar or Uttar Pradesh.
The
division is done on basis of population, but the 15th Finance Commission has used the census of 2011 instead of the traditionally used one from 1971.
This would place southern states at a disadvantage because of their successful population control measures, compared to some northern states where development indices are low and population figures high.
Demanding that efficiency be rewarded and not penalised,
four southern states participated in a conference in Kerala on Monday. A
second round of discussions has been planned to get more states on board.
Kerala finance minister Thomas Issacs, who is behind the initiative, said under the new rules, Tamil Nadu will be the worst hit state with a loss of over Rs 40,000 crore. Kerala, he said, expects to lose around 16,000-20,000 crores.
Clarifying that he was not against sharing with backward states, Mr Issac called the new rule a "backwardness formula".