6 FMs of states, UT give memo to Prez on ToR of 15th Finance Commission

Delhi Finance Minister Manish Sisodia along with his counterparts from Kerala, West Bengal, Andhra Pradesh, Punjab and Puducherry on Thursday met President Ram Nath Kovind and submitted a memorandum urging amendments to the terms of reference (ToR) of the 15th Finance Commission.

Addressing a joint press conference, Sisodia said that the current ToR would destroy the financial autonomy of the states.

Advertisement

“There are many terms of reference in the 15th FC that violate the constitutional provisions of the country. ToR were made with a motive to overshadow states and control their financial autonomy,” Sisodia alleged.
The minister said that many aspects of the ToR “destabilise the well-settled federal arrangement” of India.

The memorandum submitted to the President read, “the Terms of Reference of the Fifteenth Finance Commission raise serious concerns. They are qualitatively different from the Terms of Reference of previous Finance Commissions. 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 memorandum said that the changes would restrict the states from fulfilling their constitutional obligations as listed in the Seventh Schedule. Besides, they would prevent states from working effectively towards independent and distinct goals and aspirations within constitutional framework.

“We also proposed that the award of the 15 Finance Commission must apply to Union territories with legislatures, namely, the national capital territory (NCT) of Delhi and Union territory of Puducherry. The terms of reference may be amended accordingly,” the memorandum stated.

Sisodia said that the delegation requested the President to amend the ToR in order to end discrimination against Union territories with legislatures when it came to Finance Commission decisions.