Dr. Thomas Isaac said, the central government is creating disparity in the distribution of funds, many states are getting less than 50 percent of their taxes and some states are getting double the amount.
By Md Akash
The system of devolution must have a principle of fairness, be it money or any fundamental right applicable to all citizens of the country, who have an inherent right to enjoy a minimum standard of basic amenities, said former Kerala Finance Minister Thomas Isaac at an event organized by the Asian College of Journalism (ACJ) and BharathiPuthakalayam on Monday.
Dr. Thomas said, “Finance Commission should ensure equal opportunity for all without getting involved in any controversy. We see that the Center has opened new fronts in open political conflict with the states over discriminatory allocation of funds. Which is actually 50% tax share for our state now it’s going to be a problem. There must be certain objective criteria when it comes to transferability.”
” Also look at India’s national average income, per capita income of people. The government should then redistribute in favor of the backward states. Otherwise the gap between states in terms of inter-distribution is going to be a serious conflict problem”, he added
He said, “See what percentage of the taxes they get back from the states for the money collected by the center’s products. We see Karnataka gets only 10%, Haryana gets 50%, Tamil Nadu gets 38% and Telugu gets 29%. On the other hand, you have states that will get back double the amount of resources taken from them. Also, you must understand what’s happening at the legendary one, market forces are having a higher say that determining the economic so what is. Is back on this market, Paramount. See all the backward regions they will be the big teams of what they will develop in the province is called backwash effect.”
His point out that, “if you want to give a better life for the every citizens of country, you have no proper resource. Despite these resources, if you take a quality of life index for any of the states that are both, so this policy changes, this is situation is going to worsen, and now, at this point, I want to refer back to thestatement that general fiscal system must accommodate regional aspirations, the aspirations policies level at change, so also take into account of the challenges that advance change, suffering I will stand state something for Kerala experience.”
Talk by Dr. Thomas Isaac, Former Finance Minister, Kerala on Union-State fiscal relations in India
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Shashi Kumar, chairman of ACJ and Media Development Foundation, delivered the welcome speech saying that the government has transformed the state into a single entity. Also governors behaved like viceroys, especially in opposition states.
In his introductory remarks, N. Ram, Director, the Hindu Group and Trustee Media Development Foundation, said that “the Modi government has been trying to put economic pressure on opposition-ruled states, especially those ruled by Left-led governments or DMK. The most recent budget provided a shameful example of discrimination against states that need a better share of taxes collected.’’
Also Mr. Ram added that their dictatorial behaviour has deprived them of freedom of expression, freedom of media and other fundamental rights. In particular, they have at various times detained journalists, human rights activists, civil society activists and many who have criticized the government for long periods of time.
