No Change In Efc Recommendations, Says Ministry

The finance ministry has ruled out the possibility of changing the recommendations of the 11th Finance Commission as demanded by several states. But they have said that if there are other demands from the states those can be considered but not as part of the commission award. Senior officials of the ministry told Business Standard that there is no rethinking in the ministry on the issue. They said the usual practice for the government is to accept the award of the successive commissions without any change and it will be surprising if it is not adhered to this time. The sources said though the commission's recommendations are not mandatory in the "strict constitutional sense" the government hardly ever tinkers with it. This is especially so as the cabinet has already cleared the report of the eleventh finance commission and placed it in the parliament along with the action taken report. So any decision on a possible change has to be ratified by the parliament again. The view is corroborated by sources in the finance commission which is currently drawing up a report on the fiscal reforms programme to reduce the revenue deficit of the states to be presented by the 31st of this month. The chairman of the Eleventh Finance Commission, Prof. A.M. Khusro has already said "the percentages of devolution were arrived at taking in view the past history, the available resources and the needs of the center and the states." But the southern states led by Andhra Pradesh are protesting that the overall limit of 37,5 per cent on all plan and non plan grants from the centre for the next five years are too restrictive.