The State government has been advised to prepare well and present its case strongly before the soon-to-be constituted 16th Finance Commission to recover Kerala’s lost fiscal space. The advice came from speakers at a seminar on the Kerala Economy organised in connection with the Keraleeyam 2023 celebrations on Friday. It has come at a time when the State government has been blaming adverse central policies for the State’s troubles on the financial front.
Reduced share in tax pool
Former Union Cabinet Secretary K.M. Chandrasekhar observed that the State should form a team and do its homework well to convince the 16th Finance Commission, in matters including the State’s reduced share of 1.92% in the divisible tax pool and the revenue deficit grant. Speakers urged the State to articulate its concerns and suggestions regarding the parameters for deciding the tax-sharing formula with the commission. Other States too should be brought on board to present common concerns before the commission, they said.
