Inter-State Council To Meet Today

The standing committee of the inter-state council will meet here today to arrive at a consensus on devolution of more financial powers to states and finalise adequate safeguards to prevent misuse of emergency powers under Article 356 of the Constitution.

The first and the second meeting of the standing committee, held in January and May respectively, had failed to reach an agreement on the alternate scheme of devolution of share in central taxes to states as recommended by the tenth Finance Commission.

The recommendations of the commission, placed before the committee by finance minister P Chidambaram, suggesting that 29 per cent from the central pool of taxes be given to states, were turned down by chief ministers who said such an allocation was too meagre and would not meet their requirements. Some chief ministers wanted the states share of central taxes to be 33 per cent. Todays meeting, to be presided by Union home minister Indrajit Gupta, is expected to be attended by ministers of defence, finance, human resource development and industry and chief ministers of Andhra, Assam, Maharashtra, Orissa& Rajasthan. an and West Bengal.