News The 15th Finance Commission May Split Open Demographic Fault Lines Between South and North India

[Vicky]

There is checks and balance in the system and also accountability if the system is implemented without bias.

There is a Law called "Fiscal Responsibility and Budget Management Act, 2003 (FRBMA)" that regulates revenue deficit by setting annual targets for reduction, reduction of annual fiscal deficit and targets for assuming contingent liabilities in the form of guarantees and the total liabilities as a percentage of the GDP.

Moreover 5 states - Tamil Nadu, Karnataka, Kerala, Uttar Pradesh and Punjab had already adopted the Fiscal Responsibility Legislation (FRL) ahead of the Centre’s law.

After the law was passed, we can see that the fiscal deficits fell by almost half: from an average of 4.1 per cent of GSDP to 2.4 per cent of GSDP.

TN themselves have gone against the Supreme court guidelines that limits state prepoll sops by implementing the Amma Two-Wheeler Scheme (50% rebate on the price of two wheeler for women working in TN).

AP under CBN has to set aside money for unemployment doles and is now begging the Center for More money.

In fact the 14th Finance Commission REMOVED the 17.5% Fiscal discipline criteria from the Revenue share formula because it was impractical and did not allow for flexibility in dealing with state problems.

Finally to compare a democratically elected responsible govt. and a responsible bureaucracy to a "drunkard" reduces any discussion Farcical.

I repeat again. When I say TN has been destroyed (TN has been receiving Top or No2 FDI in India till 2014, now its in 18-19) by ADMK govt, TN people are to blame and not the central govt. We cannot demand more for Delhi for ineptitudes of our own leaders.
You have to learn to say that. Simple as that.

 

[Vicky]

AP under CBN has to set aside money for unemployment doles and is now begging the Center for More money.

In fact the 14th Finance Commission REMOVED the 17.5% Fiscal discipline criteria from the Revenue share formula because it was impractical and did not allow for flexibility in dealing with state problems.

Finally to compare a democratically elected responsible govt. and a responsible bureaucracy to a "drunkard" reduces any discussion Farcical.

AP has been "given" and "not promised" special status in law by Parliament. Its the govt's job to implement the law. Its their rightful grouse. AP
has no city to generate revenues to the level of Hyderabad. BJP also promised him that. He is asking if not special status then give financial assistance to Polavaram irrigation project and build ports there. And help build them a city. BJP promised that and is now found wanting.
Arun Jaitley is one of India's worst Finance ministers ever. Most of the defence projects have been cancelled after reaching his desks so he can maintain Fiscal deficit.

 

[Pundrick]

But right now Gujarati business is gaining more from this symbiosis, than south. Hindutwa also originated from Gujarat.

 

[Pundrick]

AP has been "given" and "not promised" special status in law by Parliament. Its the govt's job to implement the law. Its their rightful grouse. AP
has no city to generate revenues to the level of Hyderabad. BJP also promised him that. He is asking if not special status then give financial assistance to Polavaram irrigation project and build ports there. And help build them a city. BJP promised that and is now found wanting.
Arun Jaitley is one of India's worst Finance ministers ever. Most of the defence projects have been cancelled after reaching his desks so he can maintain Fiscal deficit.

As far as not allocating Special Status to AP is concerned it is very important, as there is Assam, Bihar, Chattisgarh, etc are in line. And it's like giving reservation to a particular caste, it's very tough to take it back.

I don't know why states like Bihar asks for Special status, they also got same amount of time as MP, Haryana & Rajasthan. They had one problem to solve that is to control flow of Kosi river and they couldn't do it even today, and shamelessly asks for Special status.

AP is getting special attention from center, but it should be noted that GoI has their own fiscal issues to resolve plus if Telangana gets Hyderabad then don't forget AP gets the most important treasure i.e. Vishakapatnam & other Ports, and being a coastal state will always help in growing better than hinterland.

 

[screambowl]

Nonsensical thread.
These arguments of divide on economic basis is only the result of lazy people who believe in MNREGA and Subsidy. Producing 5-5 children irrespective of your inability to feed them, and making ration card of every child and getting monthly ration on every one's name would definitely make it more vulnerable. Don't want to work, and blame everything on government. Or wait for some one to give the kaamchors reservation on their caste and region. This is the basic reason for downfall.

1. Remove reservation immediately
2. Give subsidy or economic banefits on the basis of financial background to the needy
3. Create a new ministry or department under ministry of labour to create innovative ideas for job creation and other employment plans.

Then after 7 years come and talk that you didn't get your bloody share with evidence.

 

[ManavantraTruti]

No one have been more sympathetic to the North bearing brunt to Invasions and no is disagreeing there. The last islamic rule in north was in 1730's. That's 300 odd years. When the British left India they left high and dry. There was no distinction btw South and North in that. Famine was induced in Bengal. Infact present day Bangladesh bore more brunt than present day Gangetic plains.

The question is how long states will give those useless complaints and excuses. The current MP ratio was based on 1 mp per million and was frozen in 1971. TN for ex has 39 or 39m population in 1971. WB had 42m. UP had 80m. Now lets compare the population ratio.

TN has 75m, UP has 220m and WB 95m. Mulayam and Lalu want to increase parliament size so such states can have better representations. That's another issue. Second UP, Bihar, WB has Ganga running through them. Its a perennial river for God's sake. Why do the govt need to waive loans? Cos they didnt provide adequate infrastructure for storing, transportation and collecting grains. Who is to blame? FYI SI has provided better infrastructure and no water.

Third even if I accept to ur arguement, rich brothers helping others in a family, even my own brother wont help me for eternity. When he gets married he has his family, kids to take care off. He cant destroy his life for the sake of his over-age brother. As I said, good performing states cannot be penalised for bad performing states. If you want to still give money for bad performing states, then other states should have a say on how that money is being spent by one particular state. Its not my problem if the people in the north dont elect good leaders. Its the people's wish they had elected inaptitudes like Mulayam (my blood boils when people call him Nethaji) and Lalu.
Not to say BJP leaders have been particularly wow. UP is fine till now. Its the people to blame. Southern states have been sharing the burden for the last 20 years now. So how long u think one continue?

1. British forced most of the regions in the north to grow opium, indigo and cotton and taxed them and starved them. South suffered nothing of this sort.

2. If the north start to demand more seats in LS and RS in proportion to their population, then TN will become irrelevant politically. (more than now) And you are right, its because they had more babies, but that is just the way the dice rolled.

3. All states will continue to bear the burden of each other as long as India is a single united Nation. That is just the way its going to be. All the whining and bitching can't change that.

 

[ManavantraTruti]

I repeat again. When I say TN has been destroyed (TN has been receiving Top or No2 FDI in India till 2014, now its in 18-19) by ADMK govt, TN people are to blame and not the central govt. We cannot demand more for Delhi for ineptitudes of our own leaders.
You have to learn to say that. Simple as that.

TN has done remarkably well under your leaders. You are just too unreasonable in your judgement. There is always scope for improvement, like in the case of everything in this world. But that does not mean you diminish our achievements. Same with the north.

 

[ManavantraTruti]

AP has been "given" and "not promised" special status in law by Parliament. Its the govt's job to implement the law. Its their rightful grouse. AP
has no city to generate revenues to the level of Hyderabad. BJP also promised him that. He is asking if not special status then give financial assistance to Polavaram irrigation project and build ports there. And help build them a city. BJP promised that and is now found wanting.
Arun Jaitley is one of India's worst Finance ministers ever. Most of the defence projects have been cancelled after reaching his desks so he can maintain Fiscal deficit.

If AP grouse was real, they would have moved to the SC demanding their rightful share as per the law. They are not doing that because they know their case will be thrown out.

India has far greater priorities than help AP build a brand new city. Your demand is laughable. As for other projects, I am sure Modi govt. would not go slow on anything unless there are good reason for it.

I am no fan of AJ but to claim the observing fiscal prudence makes him a bad FM is stretching it too much.

 

[mstbroo]

There is checks and balance in the system and also accountability if the system is implemented without bias.

There is a Law called "Fiscal Responsibility and Budget Management Act, 2003 (FRBMA)" that regulates revenue deficit by setting annual targets for reduction, reduction of annual fiscal deficit and targets for assuming contingent liabilities in the form of guarantees and the total liabilities as a percentage of the GDP.

Moreover 5 states - Tamil Nadu, Karnataka, Kerala, Uttar Pradesh and Punjab had already adopted the Fiscal Responsibility Legislation (FRL) ahead of the Centre’s law.

After the law was passed, we can see that the fiscal deficits fell by almost half: from an average of 4.1 per cent of GSDP to 2.4 per cent of GSDP.

TN themselves have gone against the Supreme court guidelines that limits state prepoll sops by implementing the Amma Two-Wheeler Scheme (50% rebate on the price of two wheeler for women working in TN).

AP under CBN has to set aside money for unemployment doles and is now begging the Center for More money.

In fact the 14th Finance Commission REMOVED the 17.5% Fiscal discipline criteria from the Revenue share formula because it was impractical and did not allow for flexibility in dealing with akbank state problems.

Finally to compare a democratically elected responsible govt. and a responsible bureaucracy to a "drunkard" reduces any discussion Farcical.

I disagree I do not understand the need for subsidy when they have India's greatest river running through them