NEW DELHI: Chief ministers and finance ministers of Puducherry, Delhi, West Bengal, Kerala, Punjab and Andhra Pradesh have shot off a letter to President Ram Nath Kovind saying the terms of reference of the 15th
Finance Commission violated the federal principle as enshrined in the Constitution, eroded autonomy of all states and brought significant financial hardship to states.
These states demanded that some of the terms of reference of the commission be amended, and cited precedents. They also suggested amendments. "The terms of reference of the 15th Finance Commission raise serious concerns. They are qualitatively different from the terms of reference of previous finance commissions," the letter signed by Puducherry CM V Narayanasamy, Delhi deputy CM Manish
Sisodia, West Bengal finance minister
Amit Mitra, Kerala finance minister T M Thomas Isaac, Punjab finance minister Manpreet Badal and Andhra Pradesh finance minister Yanamal Ramakrishnudu said.
"Some of the changes infringe on the provisions of the Constitution. Some others are disruptive of well-settled federal fiscal arrangements in India. Yet other changes constitute technical errors," the letter said.
It added that the terms of reference would restrict states from fulfilling their constitutional obligations as listed in the seventh schedule. "They will also prevent states from working effectively towards independent and distinct goals and aspirations within the overall constitutional framework. They will thus further weaken cooperative federalism in India," the letter said.
The states said that the award of the 15th Finance Commission must apply to Union Territories with legislatures, namely, the national capital territory of Delhi and Puducherry. Some southern states such as Kerala, TN and Andhra Pradesh slammed the move to use the 2011 population as the benchmark for devolution of taxes to states. The government has said the terms of reference of the 15th Finance Commission rightly balance both the "needs" represented by latest population and "progress towards p opulation control" very well.
There was no inherent bias or mandate in the ToRs of the 15th FC which could be construed as discriminatory against states which made good progress in population control, it asserted.