Andhra Pradesh FM Yanamala Ramakrishnudu urges for realistic formula

Vijayawada: Andhra Pradesh finance minister Yanamala Ramakrishnudu said that most of the Terms of Reference (ToR) of 15th Finance Commission are very retrograde in nature and not good for cooperative federalism as they seriously impact the autonomy of states.

“Alternatively, a more realistic formula must be provided to ensure that states that responded to national duty and controlled their populations effectively are not punished, and states that performed poorly are incentivised. So a win-win situation has to be created.”

Taking 2011 as the base year may open up this to many more areas like delimitation which is disastrous for the States that responded to national duty and controlled population growth.

He added that vertical devolution should increase from the present 42 per cent to give more flexibility to the states. Revenue deficit grant must continue as it is part of the constitutional mandate, he said.

The FM said that states deal with subjects to do with the welfare of the people and if their finances are stifled, they cannot perform their constitutional mandate as well as electoral mandate.