TN CM bats for river linking at Delhi meet

Observing that the state being entirely dependent on water from inter-state rivers, in particular the Cauvery, Palaniswami sought immediate operationalisation of the Cauvery Water Management Authority and the Cauvery Water Regulation Committee.

Pitching a new model of resource sharing to effectively deal with development challenges, he demanded states be allowed to collect and appropriate personal income tax besides being allowed to collect all indirect taxes which is in vogue in developed countries. “As is the practice in developed countries, one suggestion is to levy and appropriate all indirect taxes which can be given to the states and the Union Government can retain the direct tax revenues. Alternatively, the power of collection and appropriation of personal income tax can be vested with the states as this would take care of growing needs of the states to implement development programmes. In this way, the present complicated process of devolution of resources can be simplified,” Palaniswami said.

Referring to the limitations states have in mobilising resources, Palaniswami said Modi would understand this better. Palaniswami, who blamed the successive Finance Commissions being unfair to the state, pegged the state’s annual resource loss at Rs 6,000 core due to the reduction of its inter-se share in the divisible pool to 4.023 per cent from 4.969 per cent in overall devolution of taxes. Insisting that certain Terms of Reference in the 15th Finance Commission, he said, “Some of them are not in line with the principles of federalism enshrined in our Constitution and have to be reconsidered,” and added, “The ToR be revised as they would propel the Finance Commission into adopting a subjective and out-of-context approach while working out the principles of resource sharing.”

He reiterated the state’s demand to Centre to clear Post-Matric scholarship dues and to continue funding pattern as 60:40 as in case of any Central-State schemes to benefit the students, including SC/STs.

Palaniswami also sought interlinking of the Mahanadhi-Godavari-Krishna-Pennar-Palar-Cauvery-Vaigai-Gundar rivers and also to divert the surplus waters of the west flowing Pamba and Achankovil rivers to Vaippar in Tamil Nadu.

Puducherry Chief Minister V Narayanasamy on Sunday reiterated the demand to confer Special Category Status (SCS) to Puducherry. Speaking at the NITI Aayog Council meeting in New Delhi, a copy of his speech was released to the media here, the Chief Minister urged for the inclusion of Puducherry under the ambit of Central Finance Commission for devolution of funds similar to other states and at least ten per cent increase in the Central Grants every year. The Chief Minister further demanded that the funding pattern of all Centrally Sponsored Schemes in Puducherry be given on the lines of other states (like 90:10 ratio) in place of 60:40 ratio now among other things.