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TDP wants more funds, powers for states

Syed Amin Jafri in Warangal

The Telugu Desam Party has demanded that states should be allowed to directly seek external funds and given flexibility and powers to implement central schemes as per their priorities.

In a resolution on 'Centre-State relations' adopted on the concluding day of the Mahanadu (annual convention) being held in this Telangana town on Wednesday, the Telugu Desam also demanded "more funds and powers" for the states to effectively implement the second generation reforms.

At the same time, the party stoutly opposed the move to enact a constitutional amendment providing for direct transfer of a substantial portion of central funds to panchayat raj bodies, dubbing it as a violation of the federal spirit.

Emphasising that any future constitutional amendments should aim at making states stronger in a true federal spirit, the Telugu Desam reiterated its demand for immediate implementation of the recommendations of Sarkaria Commission, appointed in the 1980s to review Centre-State relations.

"On the one hand, there is a steady erosion in the flow of central funds and, on the other, there is growing financial burden on the states. This is unfair as the states have taken up responsibility of carrying forward reforms," Telugu Desam president and Chief Minister N Chandrababu Naidu told the Mahanadu.

He declared that he would continue to fight for increasing the share of central funds to the states.

The Telugu Desam urged the Central government to earmark more funds for those states that are successfully implementing second generation reforms. The party wanted the states' share from the divisible central pool to be raised to 51 per cent.

Claiming that the Eleventh Finance Commission report had meted out injustice to reforming and performing states like Andhra Pradesh, the party called for 'correcting the anomalies' in the quantum of funds transfer to the states.

Pointing out that central loans formed a major chunk of the public debt being accumulated by states which were already facing severe financial problems due to depleting flow of central funds, the resolution called for waiver of the central loans.

Naidu recalled that since its inception, the Telugu Desam has been consistently demanding more financial powers for the states and also increase in the share of central funds.

He called for 'meaningful' decentralisation and redefining of Centre-State relations in the light of ongoing economic reforms.

At the same time, the Telugu Desam said that any move to directly transfer the funds to local bodies would run contrary to the constitutional provisions.

"It is not proper to bypass the states and funnel the central funds to local bodies. The Centre should give up this idea and make sure that the funds to Gram Panchayats are routed through state governments," the resolution pointed out.

Strongly opposing the reported move to levy tax on services, it said: " Any proposal to impose tax on citizen services being offered by states will undermine the federal spirit."

Alleging that the Central government was steadily usurping the powers of the states and making them increasingly dependent on it for implementing all the developmental programmes, the Telugu Desam demanded that the states be given full powers over the funds under centrally-sponsored schemes.

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