Southern states may lose Rs 20,000 crore in 5 years

[Spartan]

Southern states fear they will each lose Rs 20,000 crore on an average in five years to Northern states if the NDA government’s terms of reference for the 15th Finance Commission come into force from 2020-21 to 2024-25 financial year.

The Centre has told the Finance Commission to take the 2011 Census as the basis for devolution of taxes from the Centre to the states, instead of the 1971 Census used earlier.

 

 

The population growth rate in southern states has come down since 1971 compared to northern states. 

Southern states will get less than Rs 5 for every Rs 100 given by the Centre, while northern states such as UP will get Rs 18, Bihar Rs 10 and Madhya Pradesh Rs 8.

Five southern states, namely, Karnataka, Kerala, Andhra Pradesh, Tamil Nadu and Telangana, have openly expressed their resentment at the Centre prescribing the 2011 Census as the benchmark.

The Telangana government has been seriously studying the impact of the 2011 Census and its finance department is preparing a report on how much of a loss TS would incur if the 2011 Census in considered.

Finance minister Etela Rajender said, “This is a matter of serious concern. We have no objection if the Centre gives incentives to northern states. But at the same time, it should ensure that south states are not de-incentivised. Any progressive state which is making rapid strides in all sectors and contributes to national development should not be discouraged by denying it its due share in Central funds.”

Southern states argue that states with low population growth are being penalised. The north states witnessed a higher population growth of 39.5 per cent while southern states witnessed an increase of 21 per cent.

 

[AndhraneedSCS]

idi implement cheste, South India will be a different country for sure 

[Spartan]

5 minutes ago, AndhraneedSCS said:

idi implement cheste, South India will be a different country for sure 

All southern states are not together..and Center (BJP or UPA) is taking advantage of it..simple.

AIADMK had 4-5 ministers in UPA regime..dabbu TN ki pattukellaru.

but AP, karnataka ki emi ivvaledu.

YSR unnapudu we had 40Mps in UPA...valla sonta projects techukunnaru kaani..state ki emi teledu.

so our southern leaders are to blame..vallu valla swalabham kosam politics chestunte..center is also playing same role..vellu kottukuntaru..

support cheset enti lekapote enti..north lo dabbul pedite clean sweep aina istaru kada ani game playing..

 

[Vaampire]

7 minutes ago, Spartan said:

All southern states are not together..and Center (BJP or UPA) is taking advantage of it..simple.

AIADMK had 4-5 ministers in UPA regime..dabbu TN ki pattukellaru.

but AP, karnataka ki emi ivvaledu.

YSR unnapudu we had 40Mps in UPA...valla sonta projects techukunnaru kaani..state ki emi teledu.

so our southern leaders are to blame..vallu valla swalabham kosam politics chestunte..center is also playing same role..vellu kottukuntaru..

support cheset enti lekapote enti..north lo dabbul pedite clean sweep aina istaru kada ani game playing..

 

+1

[dasara_bullodu]

4 hours ago, Spartan said:

Southern states fear they will each lose Rs 20,000 crore on an average in five years to Northern states if the NDA government’s terms of reference for the 15th Finance Commission come into force from 2020-21 to 2024-25 financial year.

The Centre has told the Finance Commission to take the 2011 Census as the basis for devolution of taxes from the Centre to the states, instead of the 1971 Census used earlier.

 

 

The population growth rate in southern states has come down since 1971 compared to northern states. 

Southern states will get less than Rs 5 for every Rs 100 given by the Centre, while northern states such as UP will get Rs 18, Bihar Rs 10 and Madhya Pradesh Rs 8.

Five southern states, namely, Karnataka, Kerala, Andhra Pradesh, Tamil Nadu and Telangana, have openly expressed their resentment at the Centre prescribing the 2011 Census as the benchmark.

The Telangana government has been seriously studying the impact of the 2011 Census and its finance department is preparing a report on how much of a loss TS would incur if the 2011 Census in considered.

Finance minister Etela Rajender said, “This is a matter of serious concern. We have no objection if the Centre gives incentives to northern states. But at the same time, it should ensure that south states are not de-incentivised. Any progressive state which is making rapid strides in all sectors and contributes to national development should not be discouraged by denying it its due share in Central funds.”

Southern states argue that states with low population growth are being penalised. The north states witnessed a higher population growth of 39.5 per cent while southern states witnessed an increase of 21 per cent.

 

India is a free country man...no one stopped anyone from changing status quo...

[cosmopolitan]

4 minutes ago, dasara_bullodu said:

India is a free country man...no one stopped anyone from changing status quo...

 

south india seperate country ayina .. we cannot be united.. its in dna.. 

[Android_Halwa]

Silly comparison and stupid assumptions. 

Its a government which focuses on welfare , not a private company to think about assets or its righteous share. 

 

[reality]

15 minutes ago, Android_Halwa said:

Silly comparison and stupid assumptions. 

Its a government which focuses on welfare , not a private company to think about assets or its righteous share. 

 

Agreed, in general. But, can’t rule out the conspiracy.

[uttermost]

5 hours ago, Spartan said:

All southern states are not together..and Center (BJP or UPA) is taking advantage of it..simple.

AIADMK had 4-5 ministers in UPA regime..dabbu TN ki pattukellaru.

but AP, karnataka ki emi ivvaledu.

YSR unnapudu we had 40Mps in UPA...valla sonta projects techukunnaru kaani..state ki emi teledu.

so our southern leaders are to blame..vallu valla swalabham kosam politics chestunte..center is also playing same role..vellu kottukuntaru..

support cheset enti lekapote enti..north lo dabbul pedite clean sweep aina istaru kada ani game playing..

 

first, devolution of finances is not biased againnst south by design. Its only incidental.

TN ki ministers dabbulu pattukelladam enti? Ilaa ney inkodu cheppadu ee db lo, that TN glides by with center's support ani. Either you guys have a racist view that Tamils can't compete on even grounds (a view I understand you probably get from your frustrated TamBram friends), or you are just clueless in general about how economy works.

your claim that AP, TN, KL, KA were robbed is not even factual. 12th,13th FC benefited KA, and AP a great deal. In fact AP (united AP) was among the top two biggest benefactors in the 10yrs that ended in 2012.

FC allocation is based on needs, depending on a few parameters, like literacy level, nutrition, and several others. KA, AP were laggard states and were given plenty of central assistance until the last 3-4 yrs. Now to pretend like south didnt have any help is dishonest.

I'm not saying that I dont believe in separatism. I absolutely do. But they should be demanded for the right reasons.

20000crores over 5years, in a budget of 1.5lk crores for a single year for single state is less than 1% loss to the exchequer.

[uttermost]

TamilNadu has infact persistently fought against central govt institutions in the state. They even funded their own metro, from the state budget, and are forever creating hurdles to central govt projects in the state.

Frankly, TN is the best example that the economic case for separatism is pointless. states can survive and thrive without center's assistance. Recently KA, that received a huge bump in GST collections thanks to service companies another example that states don't have to make the financial argument against center.

The argument should be a political one.

[uttermost]

18 minutes ago, reality said:

Agreed, in general. But, can’t rule out the conspiracy.

There is no conspiracy. I think its gadgil formula that calculates how much should be transferred to the states. 

It is undeniable that both KA, and AP (united) benefited from it until about 5yrs ago.

[uttermost]

1 hour ago, cosmopolitan said:

 

south india seperate country ayina .. we cannot be united.. its in dna.. 

what's united? there's no need to be united. we just need to learn to cooperate without infringing on each other's space (very hard political problem). if that can happen, even India can work. Hell even the world as one country can work too.

 

[reality]

1 minute ago, uttermost said:

There is no conspiracy. I think its gadgil formula that calculates how much should be transferred to the states. 

It is undeniable that both KA, and AP (united) benefited from it until about 5yrs ago.

I meant things like these (stated above), changing the basis for such formula. I don’t know how legit it is though. 

” The Centre has told the Finance Commission to take the 2011 Census as the basis for devolution of taxes from the Centre to the states, instead of the 1971 Census used earlier.”

 

[uttermost]

TN got things like 69% reservation. Is that what your states would do, if they could demand from the power in the center? I doubt it.

telling things like TN took money from the center is absolutely degrading for Tamil people's vision of what a state govt should do. For all their linguistic breastbeating, and toxic tamil nationalism, they have a specific vision that is entirely different from the entire India. and by different, I definitely mean better.

the same person I mentioned before in this db said that without brahmins, TN will be no better than Bihar/UP. lol. based on what, exactly? This view of Tamils in general population sickens me. yuck.

TN's presence in the parliament is only to keep the center out of TN's business, and to benefit the TN's mps whoever can land a ministry or a central post. beyond that TN doesn't give a fcuk about India.

[uttermost]

8 minutes ago, reality said:

I meant things like these (stated above), changing the basis for such formula. I don’t know how legit it is though. 

” The Centre has told the Finance Commission to take the 2011 Census as the basis for devolution of taxes from the Centre to the states, instead of the 1971 Census used earlier.”

 

If you think about it, if India has to survive as an union, such changes are unavoidable. because certain states have been unable to control their population, and improve their overall social indicators.

See, there are two things. one, the formal central transfers which are in no way politically motivated. and things like location of pvt/public factories and institutions. Check how many public institutions exist in Hyd/Blr, and how many in North India. On a per capita basis, south probably has a higher density of quality central institutions, both academic and industrial.