Kerala government today said it would submit a memorandum to the 15th Finance Commission against the present Terms of Reference, as it was against the state's interests and a threat to it's economy.
Addressing an all-party meeting, convened to evolve ways toamend the ToR in favour of the state, Chief Minister Pinarayi Vijayan said the state would incur heavy financial loss if the ToR was implemented in the present form.
The Chief Minister demanded that tax revenue for states be increased to 50 per cent from the existing 42 per cent and added that Kerala would also place this demand before the Commission.
"The ToR has recommendedusing the 2011 census to calculate population for allocation of central tax revenue in place of the 1971 census. If such was the case, we will demand that the state's share not be reduced, considering it's achievements in the field of population control," he said.
Kerala Finance Minister T M Thomas Isaac said the state's tax share would come down to 1.8 per cent from the present 2.5 per cent if the 2011 census was taken as the base for allocation of central tax revenue.
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Representatives of political parties extended full support to the state government for submitting a memorandum to the Commission, highlighting the 'adverse' affect of ToR.
The Commission will arrive in Kerala on May 28 and hold discussions with political parties.
The Commission would meet government representatives on May 29 and also visit different institutions at Thrissur on May 30, an official release said.
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