Don't use 2011 census for devolving funds to TN: Edappadi K Palaniswami
Chennai: Chief Minister Edappadi K. Palaniswami has conveyed the state government’s opposition to the use of 2011 population data by the Fifteenth Finance Commission for devolving funds to Tamil Nadu.
“It would punish progressive states like Tamil Nadu which have achieved success in population control through their own efforts,” he told the 15th Finance Commission on Thursday. Speaking at a meeting with the delegation led by its chairman N. K. Singh, at the secretariat here, Palaniswami recalled his previous letter to the commission expressing the serious concerns over its terms of reference.
He recalled that the 14th Finance Commission had “erred seriously” in making its projections relating to Tamil Nadu which had a debilitating effect on the state’s fiscal stature. As a result, Tamil Nadu has not benefited from the increase in share of Central taxes from 32 per cent to 42 per cent by the 14th Finance Commission because of the drastic cut in the horizontal share among states. “Instead, Tamil Nadu has lost Rs 6,000 crore per annum in the 14th Finance Commission alone,” Palaniswami said.
Hence, realistic projections which anticipate economic trends are essential, if the 15th Finance Commission is to enable a fair distribution between the Union and the states of the net proceeds of taxes, a just allocation amongst the states of such proceeds, and a reasonable set of recommendations on grants to the states, he stressed. Failure to meet investment needs in progressive states like Tamil Nadu would “choke growth in the very states which are most capable of pulling the nation upward.”
The present trend in transfer of resources of rewarding those who use resources inefficiently and do badly, and punishing those who use resources efficiently and do well— has to be reversed. The flow of resources to states like Tamil Nadu has to increase substantially, not only on grounds of fairness, but also to sustain growth in India as a whole and thereby help all states.
He argued social welfare schemes like the Puratchi Thalaivar MGR noonmeal programme for school children, in the state were designed with specific socio-economic objectives and these could not be termed populist. “Now the government of India has made Puratchi Thalaivar MGR Noon Meal programme part of the National Food Security Act,” he said.
Deputy CM O. Panneerselvam, ministers and heads of departments participated in the meeting.
