All the changes request of state governments started after Finance Ministry established the role and functions of the council to advise the commission on any issue or subject related to the Terms of Reference (ToR) of the Commission. As this practice going for a very long period in our finance distribution mechanism. Additionally, advisory council will help in broadening the commission’s ambit and understanding to seek best national and international practices on matters pertaining to fiscal devolution and improving the quality and reach and enforcement of its recommendations. This council has six members headed by the President of Forum for Strategic Initiatives, Arvind Virmani.This 15th finance Commission led by Chairman N.K. Singh is on a visit to the state to hold detailed meetings with the state government. With the word 15th Finance Commission provided will seek not to penalize those States that have achieved success in terms of improved demographic management and on other development parameters. This verbatim made by the chairman
“It should be the endeavour of the Commission to ensure that better performers are helped to perform even better, while those who have lagged behind in the mainstream development are helped to come up to the national average,” after deliberations with the Tamil Nadu government. This was response given for the CM of Tamil Nadu before the Commission that he asked question, the present trend in the transfer of resources of rewarding those who use resources inefficiently and do badly and punishing those who use resources efficiently and do well. It needs to be reversed and duty to draw its attention for this mistake. “We have taken serious note of this concern of the State government,” Singh said.
The Commission has no say in the formulation of ToR, and it is completely neutral between demands of the Centre and the demands of State governments. This is the tradition that ‘we are privileged’ to have inherited and it is the firm resolve of this Commission to continue this in the 15th Finance Commission as well, said Singh on the objections to ToR by the Tamil Nadu government.
Odisha Chief Minister Naveen Patnaik today presented before the 15th Finance Commission a slew of demands while suggesting an increase in tax devolution from 42% to 50% and cess and surcharges as part of the divisible pool. During a meeting with 15th Finance Commission Chairman NK Singh and members of the commission, the CM suggested the 1971 population should be used as devolution criteria. As like TN Chief minister who requested the same changes to the commission. Further, he added Some other major suggestions he presented before the Commission include- an extension of GST compensation for another 10 years, utilization of the Clean Energy Cess in coal mining areas and provide a package for disaster management of Rs 1,500 crore to build more cyclone shelters and improve the warning systems. As its vulnerable to calamities, they are expecting to get special status for recovering and mitigation. While seeing the claiming some similar suggestions, will commission decided it by majority interest and circumstances to accept for vertical formula taking 1971 census for population growth of the state. If TOR created this much thrashes to tax distributions in between states, did this lead to question of law before court of India via flaw in the constitutional mechanism. And this Commission will give its recommendations by October 2019, which Singh said to the press. Is there any chances of tugs occur between state and central for such recommendations, if they failed to respect one than other. This will be answered after recommendations published in official.
LEGAL NEWS WRITER- BOSHI KAVIYA