16th Finance Commission: FMs’ conclave in k to seek fair share for Opposition-ruled states

CHENNAI: Finance Ministers from Tamil Nadu, three other South Indian states, and Punjab will meet in the Kerala capital on September 12 to highlight the significant cuts in the central financial allocations to some states due to their progress in developmental indices.

The opposition-ruled states – Tamil Nadu, Kerala, Karnataka, Telangana, and Punjab – are holding the conclave to seek a fair deal for their fiscal needs in the upcoming 16th Finance Commission.

The Finance Ministers' conclave is also seen as a bid to build pressure on the BJP-ruled Centre to address their grievances regarding resource allocations, given the commencement of the 16th Finance Commission's operations, chaired by Dr A Arvind Panagariya.

Apart from State Finance Minister Thangam Thennarasu, the conclave would be attended by ministers from Kerala (KN Balagopal), Karnataka (Revenue Minister Krishna Byre Gowda), Telangana (Deputy CM and Finance Minister Bhatti Vikramarka Mallu), and Punjab (Finance Minister Harpal Singh Cheema).

Also, officials including finance secretaries and subject experts, like former Economic Advisor to the central government Arvind Subramanian, would also attend, said the Kerala government that is hosting the event.

The DMK government has been at loggerheads with the BJP-led Centre ever since the devolution of taxes from the divisible pool of the Union government was reduced between the last few Finance Commissions.

The central tax share devolution to Tamil Nadu was reduced to 4.079 per cent by the 15th Financial Commission from 5.305 per cent recommended by the 12th Finance Commission. Earlier this year, Thennarasu had pointed out that Tamil Nadu, which accounts for 6.19 per cent of the national population and the second-largest contributor to the national GDP, received only 29 paise for every rupee it contributed to the central exchequer by way of taxes.