Chief Minister for a relook of Finance Commission role

Devolution of funds should not become exercise to curtail States’ powers, says CM

Chief Minister K.Chandrasekhar Rao has said it is time for the Finance Commission to think of leveraging the Indian economy to attain greater growth and the Commission’s functioning should not become a routine exercise.

“The Finance Commission should be more of a policy formulating body. The broad fiscal policy lies with the Government of India and they are supposed to devolve funds to the States but they have centralised the exercise. Devolution is the right of the States. The Centre should not come in the way of growing States and should not dis-incentivise such States,” Mr. Chandrasekhar Rao said.

The ideal relation that should exist between Union government and State governments was absent. “It is unfortunate that the devolution policy is being exercised in a manner that is dishonouring the State governments and their powers,” he said.

The Chief Minister held a review meeting here on Saturday with the Finance and other senior officials and with the officers of Chief Minister’s Office in the backdrop of possibility of the visit of the 15th Finance Commission to the State shortly.

Expressing his reservations over the role of Finance Commission, Mr. Chandrasekhar Rao said the Commission visited the States with pre-conceived notions and Terms of Reference. The ToR should be formulated after the Commission completed its visit and after taking the views of the State governments. There was huge diversity with reference to the States’ requirements in the country.

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