Yanamala Ramakrishnudu opposes Centre's tax devolution formula
Vijayawada: State finance minister Yanamala Ramakrishnudu reminded the visiti-ng members of the 15th Finance Commission that various states, including Andhra Pradesh, had expressed concern on so-me of the Terms of Reference (ToR) of the 15th Finance Commission which might weaken cooperative federalism in India.
He also said that the Andhra Pradesh government had objected to the use of 2011 population as a factor for determination of devolution of taxes.
“I would like to mention that Andhra Pradesh, along with some other states, had presented a joint memorandum to the President of India wherein we had express-ed our concerns on some of the ToRs to the 15th Finance Commission wh-ich might weaken co-operative federalism in India. We had objected to the use of 2011 population as a factor for determination of devolution of taxes. The 42nd Amendment, 1976, to the Constitution of India has mandated to use the 1971 Census as the basis for delimitation and determining states’ representation in Parliament until 2001, and the deadline was further extended for 25 yea-rs, i.e. till 2026 through the 84th Constitutional Amendment, 2001. These amendments were intended to give a boost to the implementation of the family welfare program-me,” he said in a address at the meeting with the members of the 15th Finance Commission.
He added that the use of 2011 Census would have a direct impact on progressive states like Andhra Pradesh, which have successfully reduced total fertility below the repla-cement rate. The ToR has potentiality to severely alter regional balances, both in political and economic terms, he added.
Mr Ramakrishnudu ho-ped that that the 15th Finance Commission would be sensitive to the needs of Andhra Pradesh and do justice to its efforts so that the state can come to a level playing field with other states.