Centre Has Suggested To The Finance Commission To Incentivise States That Have Worked On Population Control : PM Modi

| April 12 , 2018 , 16:27 IST

Prime Minister Narendra Modi on Thursday stated that the Union Government has suggested to the Finance Commission to consider incentivising states that have worked at controlling their population.

Taking to Twitter, the PMO handle tweeted, "The Union Government has suggested to the Finance Commission to consider incentivizing States who have worked on population control. Thus, a state like Tamil Nadu, which has devoted a lot of effort, energy and resources towards population control would certainly benefit."

In another tweet, the Prime Minister stated, "A baseless allegation is being made about the Terms of Reference of the 15th Finance Commission, being biased against certain states or a particular region."

This comes in the wake of Karnataka Chief Minister Siddaramaiah's stern objection to the terms of reference of the 15th Finance Commission that shifted the baseline from the 1971 census to 2011 census. Other prominent leaders from South India too have echoed similar sentiments. DMK working President MK Stalin even sent out a letter to Prime Minister Modi and the Chief Ministers of all BJP ruled states against what he termed as 'ill-conceived terms of reference.

'I urge Hon'ble PM @narendramodi and Finance Minister @arunjaitely to modify the undemocratic ToR to XVFC and ensure financial justice to the progressive states.

ALSO READ: India Emerging As Defence Hub Despite Challenges: PM Modi At Defence Expo 2018 

Siddaramaiah argued that changing the baseline to 2011 Census will penalise progressive states, which have worked hard to control their population while rewarding those who have failed to bring down their population in the last 30 years.

He said, "Centre asks 15th Finance Commission to use 2011 census data, instead of 1971 census used so far, to determine devolution of taxes. This will further affect the interests of the south."


ALSO READ: Cabinet Approves Setting Up Of 15th Finance Commission, Salary Revision For SC, HC Judges

Siddaramaiah said, "The need to transfer resources to less developed regions of the country is legitimate. We need to redress regional imbalances in development. Question is should this be done by under-investing in the south? Should development & population control not be incentivized?"

"The 15th Finance Commission must bring new thinking to the table & give incentives to tax mobilization effort, growth engines like Bengaluru, Hyderabad, Coimbatore, Kochi etc., and education & empowerment of women (a proxy for population control), " Siddaramaiah added.

Previously on Tuesday, finance ministers and officials from Andhra Pradesh, Kerala and Karnataka and Puducherry met in Thiruvananthapuram to strongly oppose the terms of reference for the devolution of funds to states. 

This even stated a South vs North war, as Siddaramaiah had said that the South is subsidising the North that the south is subsidising the North. Similar statements had come from Andhra Pradesh CM Chandrababu Naidu and Telangana CM Chandrasekhar Rao. Their contention has been that their state earns more tax revenue for the Centre than it gets in return.