The Hindu : CMP for 35 per cent share in Central taxes

Online edition of India's National Newspaper
Tuesday, Dec 23, 2003

Southern States

Southern States - Kerala

CMP for 35 per cent share in Central taxes

By Our Special Correspondent

THIRUVANANTHAPURAM DEC. 22. The CMP, a constituent of the ruling UDF, today urged the 12th Finance Commission to consider raising the share of Central taxes to the State from 29 to 35 per cent.

In a memorandum submitted to the commission here today, the party general secretary and Cooperation Minister, M. V. Raghavan, urged the commission to rectify the estimates regarding the average growth rate in total Central transfers.

This was lower for Kerala at 8.3 per cent when compared to that of other States (12.5 per cent). Similarly, the imbalance in Central transfers need to be rectified as could be seen from the Ninth Plan per capita transfers.

This was only Rs. 4,995 for Kerala as against the Rs. 6,158 for other States, 23 per cent higher than the transfers to Kerala.

It urged the commission to accept the scientific forecast proposed by the Kerala Government in calculating the total transfer from the Central pool. It wanted the commission to give more weightage to population and the density of population to be reckoned as a criterion.

This was so because the density of population determined the pressure on natural resources and therefore it was only just that this criterion was included along with area, the memorandum said.

In order to help the State upgrade its social security system, the Finance Commission should give considerable weightage to Kerala's achievement in the social sector, which had been lauded worldwide. Similarly, it should consider giving weightage to the ageing population. The growing percentage of senior citizens should not become a burden to society and therefore the pressure on this count should be considered while recommending devolutions to the health sector, it said.

The memorandum wanted the commission to consider higher allocation for the State to sustain the achievements in the health sector. It invited the attention of the commission on issues related to agriculture, higher education and the complications the State was facing on account of the Centre's trade policies. It wanted the States like Kerala to be compensated for the negative impact these had on its economy.

Kerala Congress (M)

demand

Meanwhile, the Kerala Congress (M) today urged the 12th Finance Commission to give special weightage to population density and to fix a higher quantum of the State's share from the Central taxes pool at 40 per cent.

In a memorandum submitted to the Finance Commission, presented by the Kerala Congress general secretary, Joy Abraham, the party said that the commission should compensate the State for what it had lost as a result of the 11th Finance Commission's recommendations.

The party opposed the Central Government's practice of announcing schemes sponsored by the Centre on the items listed under the State subject. It wanted the commission to consider revising the grant-loan ratio in Central assistance, with the weightage being given to higher grant amount.

In the case of the natural national calamity relief fund, the party felt that funds should be allowed for reconstructing basic facilities.

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