Bridge North-South divide

The issue of the terms of reference (ToR) for the 15th Finance Commission (FC) drawn by the Central Government has brought focus on the divergence of interests between the North and the South. The southern States did not hide their unease at the deviation from the previously followed parameters. Revenue-sharing between the Centre and the States and among the States should justify us as a federal republic.

Whether to use 2011 or 1971 census data has become a bone of contention as it entails who gets more and who gets less. The northern States will receive more and southern States less if the FC goes by 2011 as the base year in accordance with the ToR. This will then be construed as penalisation by the southern States for the population stabilisation achieved by them. The poorer States deserve more funds if the lion’s share of the allocated funds is spent on the have-nots and not gulped down by the haves. The impoverished in the North should benefit to justify the subsidisation by the South.

Tasking the FC with finding ways of reducing ‘populist expenditure’ is worrying and unwarranted. It will curtail the funds required by the South to implement ‘social welfare schemes’ and achieve better human development indexes. The States cannot be dictated to spend less on entitlement programmes and abdicate their social responsibility.

Kanyakumari

This refers to the article ‘Southern States will lose out on tax devolution’ (April 13). Financial resources from one State to another are transferred in many ways. Since 1949, poor, mineral-producing States have subsidised industrialised coastal States. The matching grant formula in the past ensured that poorer States could not spend their allocation and the lapsed grants were thus transferred to better-off States. Finance Commissions have permitted 3 per cent of State GDP as fiscal deficit to States. Poorer States lose out here also as their GDP is low. Earlier Finance Commissions punished poorer States for having revenue deficit. But the 14th Finance Commission has given nearly ₹2 lakh crore to States with revenue deficit, all of whom are middle-income States. Fiscal discipline ceased to be a norm. Why talk of tax share only? Should we not talk about other ways of financial transfers also.

Ahmedabad

Telangana Chief Minister KCR’s efforts to forge an alliance of opposition parties, equi-distance from both the BJP and the Congress is an idea whose time has come and must be welcomed by all. A strong non-Congress opposition to ruling BJP’s Modi juggernaut is the need of the hour as the Congress is moving with a single point, outdated, myopic, feudal and suicidal agenda of perpetuating the dynastic politics, abhorred by the emerging, young and aspirational India. Interestingly, the response to KCR’s federal opposition move from Mamta Banerjee, Deve Gowda and other regional satraps is warm and encouraging. Chandra Babu Naidu, Nitish Kumar (miffed with BJP), Naveen Patnaik and others may soon join the political bandwagon.

Belagavi

This refers to the article ‘The Opposition needs an ‘ism’ (April 16).The Modi mantra that worked across the nation in 2014, has since had no effect on BJP’s own burgeoning fringe and the veneer is fast thinning. Social fragmentation has set in as governance has paled and job creation lost in catchy slogans.

The Congress has not been able to recapture its relevance leave alone its eminence. Add to this the helplessness of regional parties most of which were founded by men who circumscribed regional aspirations within national themes.

That gave us the valuable experience in coalition politics But soon,the game of numbers made their aim insular and the vision narrow. To be fair, it was the Left that was able to provide a shared platform and some political glue to these disparate outfits and helped extend their relevance. The Third Front was its brainchild.

Navi Mumbai

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