The provisions in 15th Finance Commission will pose a threat to federal democratic system and cause a huge loss to states, according to Kerala Finance Minister, T M Thomas Issac.
He told mediapersons here on Monday that southern states alone would suffer a loss of Rs 80,000 crore through the panel recommendations. He alleged that the Centre was trying to grab the powers of states through Finance Commission.
States should have economic freedom and the Centre should not weaken the states financially. Isaac said that the finance ministers’ conclave scheduled to be held in AP on May 7 will discuss and debate on the issue extensively and take a decision.
Finance Minister of AP Yanamala Ramakrishnudu will submit a memorandum to the Centre after the conclave. Isaac said that finance ministers of several states came forward to attend the conclave and "we are trying to garner the support of other states too’’.