Opposition meet to focus on ‘fiscal federalism’

A. M. Jigeesh New Delhi | Updated on September 14, 2019 Published on September 14, 2019

FMs of non-NDA States to attend one-day event in Thiruvananthapuram today

A seminar, to be organised by the Left-led Kerala government’s Gulati Institute of Finance and Taxation on Saturday, against the additional terms of reference of the 15th Finance Commission, will see the Opposition parties coming together on the issue of fiscal federalism and sharing of taxes and revenue resources.

Former Prime Minister Manmohan Singh will inaugurate the one-day seminar.

Finance Ministers of almost all non-NDA States will be present in the seminar on the theme — ‘Additional Terms of Reference of the 15th Financial Commission: Implications for the States’. Kerala Finance Minister Thomas Isaac told BusinessLine that the State government decided to hold the seminar because it believes that additional terms of reference is unconstitutional, unethical and against the economic logic. “We thought we will have a seminar in Delhi to discuss the issues involved. We don’t want this to go unchallenged,” he said.

Isaac said that the additional terms of reference will be counter productive at the time of economic slowdown. “This is the period when you need economic expansion and fiscal stimulus. But these people (Centre) think of reducing the tax devolution to States. They are curbing the additional borrowing power of the States and putting constraints on them so that they are not be able to undertake any stimulus. There has to be a joint effort by the Centre and States. The additional terms of reference stands ill-equipped to face the current economic slowdown,” he added.

The first session in the one-day seminar will be on ‘15th Finance Commission - Story So far’, and will be chaired by Puducherry Chief Minister and Finance Minister V Narayanasamy. Delhi Finance Minister Manish Sisodia; Punjab Finance Minister Manpreet Singh Badal; West Bengal Finance Minister Amit Mitra; and former Jammu and Kashmir Finance Minister Haseeb A Drabu will also speak at the event. Another session titled ‘Threats to Federalism’, will be addressed by senior Opposition politicians such as Sitaram Yechury, D Raja, Jairam Ramesh and Dipankar Bhattacharya.

Members of earlier finance commissions will speak at a session on Union Government Responsibilities: Perspective of Finance Commissions. Eminent economist Prabhat Patnaik will chair a session on Fiscal Health and Development Implications for States. There are sessions on Implications of Fiscal Stability and Governance, Response of the Fourth Estate and the Constitutional Implications and Additional Terms of References.

Fear of a recession

CPI General Secretary D Raja told BusinessLine that IMF has commented upon the economic slowdown.

He said such seminars will give a message that State governments cannot keep silent on such a slowdown. There is concern that a depression or a recession is in the offing.

“We have to assure people that we are with them,” Raja added.

Published on September 14, 2019

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!


Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.