Kerala plans seminar on new Fifteenth Finance Commission mandate

The Kerala state government and Gulati Institute of Finance and Taxation is planning a seminar in New Delhi on September 14 to discuss the additional terms of reference (TOR) of the Fifteenth Finance Commission (FFC).

``We are inviting economists and policymakers to the seminar. We are also inviting finance ministers from other states, including BJP-ruled states,’’ Thomas Isaac, finance minister, Kerala, told ET over phone.

Isaac said the seminar would specifically discuss the new TOR notified by the president on July 29. ET had reported on July 26 how the union government wanted the FFC to reduce the divisible pool of central taxes to create a Rashtra Suraksha Nidhi or non-lapsable defence fund. The move has upset states who believe that the move will significantly shrink their resources.


``Indian federalism in danger,’’ Isaac had tweeted after the new TORs were notified. ``States have been protesting against TOR of 15th FC suggesting a reduction in the state’s share of divisible pool of taxes from the present 42 percent. Now through additional TOR Govt of India wants to ensure that the divisible pool itself is reduced,’’ he wrote on micro-blogging site Twitter.

The Kerala finance minister has also written to all states as well as union finance minister Nirmala Sitharaman calling for discussion on the new TOR. He also said that Kerala would submit a fresh memorandum to the FFC.