Fiscal concerns of Opposition-ruled states to echo at Kerala conclave

Kerala Finance Minister K N Balagopal said that the devolution patterns being followed by the Centre was discriminatory. While states are bearing 62.4 per cent of the public expenses, they are receiving only 37 per cent of the total revenue while 63 percent is going to the Centre, he added.

Kerala Finance Minister K N Balagopal.

Credit: PTI Photo

Thiruvananthapuram: A conclave comprising the states ruled by Opposition parties to be held in Thiruvananthapuram on Thursday will be urging the Union government to enhance Central allocations to these states.

Kerala Finance Minister K N Balagopal said that the devolution patterns being followed by the Centre was discriminatory. While states are bearing 62.4 per cent of the public expenses, they are receiving only 37 per cent of the total revenue while 63 percent is going to the Centre, he said. The general feeling is that at least 50 per cent of the revenue should be shared among the states, he added.

Kerala is hosting the conclave to discus the issues to be raised to the 16th finance commission. Karnataka revenue minister Krishna Byre Gowda, Telangana deputy chief minister Mallu Bhatti Vikramarka, Tamil Nadu finance minister Thangam Thenarasu and Punjab finance minister Harpal Singh Cheema would be attending. Kerala Chief Minister Pinarayi Vijayan will inaugurate the event which will see the participation of financial experts like former Chief Economic Advisor of the central government Arvind Subramanian.

Allocations based on population as well as issues like frequent natural calamities caused by climate change and man-animal conflicts are among the other matters that are likely to come up for discussion.

Kerala had already urged the Centre not to insist that the 2011 population census be considered by the 16th Finance Commission. The state suggested that either the 1971 census figures should be considered or weightage should be given to states that achieve low population growth. Fall in devolution to states owing to the increased cess and surcharge collection by the Centre could also be raised by Kerala at the meeting.

The Opposition-ruled states would be also echoing their general concerns over the alleged discriminatory approach of the Centre among the BJP-ruled states and the non-BJP-ruled states, and attempts by the BJP government at the Centre to sabotage the nation's fiscal federalism.