Jaya requests 14th Finance Commission to take a bold approach

Claiming that the Centre's approach to finance state governments' plans was "very condescending", Tamil Nadu Chief Minister J Jayalalithaa today requested the 14th Finance Commission to adopt a "bold approach", instead of "incremental" and "self-limiting" move.

"The Fourteenth Finance Commission is at the cusp of history. It has the opportunity to re-order Centre-State financial relations in the country and make them reflect the contemporary reality of the political economy," Jayalalithaa said at the meeting of 14th Finance Commission here.

"I urge the Commission that your approach should not be incremental and self-limiting. I request you to take a bold approach and effect the paradigm shift that is needed at this juncture," she said.

Stating that Tamil Nadu does not receive its due share in the Central Plan funds and receives 4.328 per cent in fund flow against 5.96 per cent, she said, "Not only does this design of fund flow penalise a better performing state, it also raises a very serious doubt that there is a sinister conspiracy to consciously discriminate against some states in matters of plan allocation."

Observing that the sustained low birth rates in Tamil Nadu offers very high proportion of its population in the working age group, Jayalalithaa said through the ambitious Vision-2023 the state eyes investments of Rs 15 lakh crore in social and economic infrastructure.

"Initiatives like the free laptop scheme are directed at skill enhancement. The state urgently needs fiscal support at this crucial stage of development. Any tapering of transfers at this stage would adversely affect long term growth prospects," she said.

The Fourteenth Finance Commission headed by former RBI Governor Y V Reddy is on a two-day visit to Chennai.