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West Bengal for giving representation to States on RBI board, Plan panel

Special Correspondent

Thiruvananthapuram: West Bengal has demanded adequate representation for States in the National Development Council, Planning Commission, Inter-State council and Finance Commission and on the boards of the Reserve Bank of India and other national financial institutions.

Delivering the presidential address at the inaugural session of a two-day national seminar on ‘Centre-State relations in the context of the XII Finance Commission’ here on Tuesday, West Bengal Finance Minister Asim Dasgupta, who is also Chairman of the Empowered Committee of State Finance Ministers, said these bodies had been functioning almost as an extension of the government of India with an implied bias in favour of the Centre and their decisions have often not been fair to the States.

Rotational basis

He said one representative of the State governments from each region should be appointed to the Finance Commission and the boards of the RBI and other national financial institutions on a rotational basis.

The views of the States should be taken seriously in ensuring credit disbursement by banks and financial institutions in accordance with the requirement of allocation for priority sector and maintenance of inter state balance.

Dwelling on the administrative, legislative and financial and emerging issues, Mr. Dasgupta wanted a constitutional amendment to safeguards against the abuse of Article 356 and Article 355 and the transfer of all residuary powers to the States. The Governor, he said, should be appointed by the President from a list of three eminent persons suggested by the Chief Minister, satisfying the criteria mentioned by the Sarkaria Commission. The Constitution should be amended to provide for the time limits for Governor’s or President’s assent to bills passed by State Assemblies.

Intrusion opposed

Mr. Dasgupta also opposed the Centre’s intrusion into State subjects through various Centrally sponsored schemes. He was against the current Central government practice of imposing external loans and aid agency conditionality on State governments on State subjects without their concurrence. Distortions created by Central tax exemptions should be stopped and instead direct development grants should be given to the States concerned.

He wanted the share of Central Taxes to the States increased to at least 50 per cent.

The States should be given the power of concurrently taxing all services, their share of market borrowing in the total market borrowings should be raised to 50 per cent.

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