Chidambaram appeals all states to oppose 15th Finance Commission ToR

Former finance minister P Chidambaram. PTI

As six states and two Union Territories sign a memorandum to President Ram Nath Kovind seeking to change the terms of reference of 15th Finance Commission, former finance minister P Chidambaram on Tuesday urged more states to join the bandwagon to save progressive states.

“I welcome the statement of finance ministers of six states criticising the Terms of Reference of 15th Finance Commission. I appeal to other state governments to sign the memorandum,” Chidambaram said in a tweet.

Andhra Pradesh, Kerala, West Bengal, Punjab, Delhi and Puducherry opposed the use of census 2011 data by 15th FC for arriving at tax devolution formula. These states signed a memorandum to be submitted to the President saying the Terms of Reference of the 15th Finance Commission will impact their fiscal federalism and would cause great injustice to the states.

Some states have planned a draft common memorandum to be submitted to the President of India, urging him to re-frame the terms of reference.

"Poorly performing states must be uplifted, but not at the cost of progressive states. A new paradigm for devolution must be established in the spirit of partnership between the Centre and states," they said.

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