PM rubbishes allegations on Fin Commission

PM rubbishes allegations on Fin CommissionCHENNAI: Prime Minister Narendra Modi has said the Centre has suggested to the finance commission to consider incentivizing states working on population control, while refuting charges that the Terms of Reference of the 15th Finance Commission were biased against certain states.

The issue was being raised by “vested interests,” he said without naming anyone.

Modi’s remarks come within days after CPI-M ruled Kerala hosted a conference of finance ministers of southern states, which was also attended by Puducherry, a union territory.

At the conclave, Kerala, Karnataka, Andhra Pradesh and Puducherry had opined that ToR were in contradiction to the principles of federalism enshrined in the Constitution and would also result in revenue loss to performing states.

Tamil Nadu, which skipped the meeting, said using the 2011 census to calculate population for allocation of union tax revenue “would greatly impact” the state which has “efficiently” implemented population control measures.

It had decided to make a representation to the Finance Commission through MPs from Tamil Nadu on the matter, seeking necessary amendments.

Modi said Tamil Nadu “would certainly benefit” following the Centre’s suggestion to the Finance Commission on incentivizing such states.

“The Indian government has suggested to the finance commission to consider incentivizing states that worked on population control,” the Prime Minister said.

“By this yardstick, a state like Tamil Nadu which had devoted a lot of effort, resources and energy on population control would certainly benefit,” he said.

This was not the case earlier, he added.

Modi was speaking after inaugurating the ‘Diamond Jubilee Building’ of the city-based Cancer Institute and various other facilities there. PTI