FMs of various states to meet in AP over 15th Finance

Finance ministers of various states are expected to meet here on May 7 to discuss the concerns on the Terms of Reference (ToR) and recommendations of the 15th Finance Commission.

Andhra Pradesh Finance Minister Yanamala Ramakrishnudu made an announcement in this regard today.

He claimed that 12 states including Andhra Pradesh, Tamil Nadu, Telangana, Kerala and Karnataka, would suffer heavily because of the 15th Finance Commission recommendations.

"The Centre is trying to boss over the states in total disregard to the federal spirit. Rather than extending a helping hand to progressive states that have been maintaining financial discipline, the Centre is seeking to suppress them," the minister alleged.

"In the name of the 15th Finance Commission recommendations, the Centre is trying to deprive progressive states of funds," Yanamala told a meeting of bureaucrats here.

Later, a press release from the minister's office said the meeting of finance ministers on May 7 would be a follow up to the one held in Thiruvananthapuram last month to discuss the concerns over the ToR of the 15th Finance Commission for devolution of funds to states.

Andhra Pradesh alone would stand to lose Rs 8,000 crore because of the commission's recommendation on financial devolution based on 2011 census, the minister claimed.

"The Centre says it will extend incentives to states implementing the central schemes effectively. But this will dent the states' own schemes. The Centre seemingly wants the states to bend before it and thereby boss over them," Yanamala charged.

"We have convened a meeting with finance ministers, secretaries and financial experts of these states here on the May 7 to discuss these issues."