Karnataka Agriculture Minister Krishna Byre Gowda today alleged that a "desperate" BJP at the Centre was playing politics over Terms of Reference of the 15th Finance Commission.
"BJP has been desperate of late. They have been questioned by the people of the country over their onground performance," the minister said.
"And hence, I infer, they have brought out Terms of Reference of 15th Finance Commission to weaken non-BJP ruled states in terms of funding," he told reporters here.
He said ToR would lead to progressive states getting lesser allocation for 2020-25 period.
On the other hand, states that were lagging in governance and responsibility to deliver socio-economic services would be rewarded by grants from 15th Finance Commission, he argued.
The 14th Finance Commission had decided on the percentage of financial devolution and grants-in-aid, taking the 2011 census as the basis for central assistance.
More From This Section
Gowda said tax devolution was a constitutional right of the states and "it is not a knob in the hand of the central government to open and close as it pleases."
Any attempt to unilaterally and unfairly alter tax devolution violates the federal spirit, and hence weakens the union, he said.
"This will penalise progressive southern states like Karnataka for their above average performance and achievements," the minister said.
To a query, Gowda said Karnataka would participate in a meeting of finance ministers of southern states in Thiruvananthapuram on April 10 to discuss and arrive at a consensus on their response to ToR.
Asked whether Andhra Pradesh and Tamil Nadu finance ministers were participating, Gowda said he is not updated on it, "but Andhra Pradesh FM has shown positive signs."
"If Tamil Nadu does not attend, then the people of that state will be the biggest losers," he said.
Asked whether Finance Commission Chairman N K Singh had intimated the government about the consultation meeting with it in the second week of this month, he said, "We are expecting an intimation, which is its duty to intimate."
Asked whether he would support populism or fiscal discipline as suggested by the Finance Commission, he said the word populism needs to be defined.
Karnataka has been maintaining fiscal prudence, he said.
Gowda also said, though on the face of it, the provision of incentivising looks like a progressive measure, it excludes states that have already brought population rate down.
To another query, he said the Centre could have linked incentives to achievement of key national priorities instead of linking incentives to their flagship programmes.
"This would reward all states that will achieve or have already achieved national socio-economic goals. This would have had the double benefit of putting focus on results instead of merely spending money without necessarily achieving results," he said.
Gowda demanded amendment of the ToR and respect for the rights of performing states.
Disclaimer: No Business Standard Journalist was involved in creation of this content