Blaming the AINRC-BJP government for “insincerity” towards the cause of Statehood for Puducherry, former MP M. Ramadass said the leadership should at least renew its push for the long-cherished goal now with the Union Government approving the Terms of Reference for the Sixteenth Finance Commission (SFC).
In a statement, Mr. Ramadass, who leads the newly-launched Puducherry State People’s Development Party (PSPDP) which has adopted Statehood as a principal objective, said two provisions in the ToR prescribed for SFC are disquieting and disappointing to the Union Territory of Puducherry (UTP) and its people.
The primary tasks of this commission would be to recommend the quantum of net proceeds of Centre’s tax revenue between the States and the Centre and the principles governing the grants-in aid to the States under Article 275 of the Constitution, and to suggest ways and means of augmenting the Consolidated Fund of the States to supplement the resources of local bodies.
Since these two provisions pertain only to States, Puducherry as a Union Territory would remain outside the purview of the SFC. Further, since the local bodies in Puducherry are kept under the back burner for the last 12 years against the letter and spirit of the Constitution of India, the second recommendation of SFC would also have no bearing on the Union Territory.
Pointing out that Statehood and holding local body elections regularly are the key to gaining entry into the ambit of Finance Commission, Mr. Ramadass bemoaned the fact that neither the AINRC nor the BJP evinced genuine interest on these crucial issues.
The inaction and inertia of the Government will exert considerable financial loss. Puducherry will not receive any share of resource from tax devolution, or grants under article 275 of the Constitution, or other State-specific grants. This will deprive Puducherry of its opportunity to make capital investment which would ultimately retard economic growth, employment and livelihood opportunities to the people.
“The Lieutenant Governor and Chief Minister should own responsibility for this loss and provide an explanation to the people,” he said.
According to Mr. Ramadass, Puducherry has a strong case for inclusion in SFC, especially when the Union Territory of Jammu and Kashmir with legislature has already been included in the 15th Finance Commission. Moreover, although Puducherry is a Union Territory, it has matured into a State and bore all characteristics of a State, such as an elected legislature, participation of its MLAs in the election of the President of the Republic and a Public Account. Puducherry is also a member of the GST Council and the Council of Chief Ministers of Southern States. It is also on a par with States in terms of system of tax and expenditure, borrowing rights or adherence to financial discipline and management targets.
He urged the Lt. Governor and Chief Minister to at least in this belated hour meet the Central leaders for a positive decision in this regard.