Thiruvananthapuram (Kerala): The Kerala government will organise a Fiscal Conclave of states on September 12 here. The Conclave is being held as part of efforts to firm up a unified position on centre-state relations and tax devolution.
Finance Ministers of Punjab, Karnataka, Telangana and Tamil Nadu, Kerala Chief Minister Pinarayi Vijayan and Leader of Opposition VD Satheesan will participate in the conclave, which is being held to protect federalism, Kerala Finance Minister KN Balagopal told reporters here.
The Conclave is expected to throw up data and models that could be used to convince the 16th Finance Commission of the discrimination faced by performing states like Kerala. The 16th Finance Commission, led by Aravind Panagariya, first vice-chairman of the Centre's think-tank NITI Aayog, is expected to visit Kerala in December.
The Conclave, therefore, is also a preparatory exercise, an attempt to draw up persuasive arguments to be placed before the 16th Finance Commission members.
"The Commission will study the memoranda submitted by the states," said KN Balagopal. He also said keeping in view the overall fiscal condition of the country, the Centre should arrive at a tax devolution formula. "This time we want the share of states to improve," added Balagopal.
According to Balagopal, the Conclave would primarily dwell on two issues: Centre-State relations and fiscal devolution to states. He said after the 10th Finance Commission gave its award, Kerala had received 3.8 per cent from the divisible. "After the 15th Finance Commission, it was halved to 1.92 per cent. The devolution has dwindled to Rs 24,000 crore after the 15th Finance Commission," he said.
"Nonetheless, there are many states in the country where the 10th Finance Commission share has either been sustained or even improved upon," the Finance Minister added.
Kerala Chief Minister Pinarayi Vijayan will inaugurate the Conclave. This year, the 16th Finance Commission will decide how much to give each state for a period of five years. Financial experts will also participate in the two-session conclave, added KN Balagopal.
He also clarified that cess and surcharge are not included in the divisible pool which determines the amount to be distributed to the states.
"There is no change in the borrowing limit for this financial year as well. The bonus issue of government employees will be decided today," he said.
KN Balagopal also said the price hike will not affect during Onam. "Consumer federations will also be involved in the market and Onam will go smoothly," he concluded.
