Andhra Pradesh Chief Minister Chandrababu Naidu has sought an emergency meeting of the National Development Council to take a final view on the subject. His State is expected to lose about Rs 1,000 crore in the current financial year because of the recommendations.

EFC which submitted its final report to the President last month has suggested a devolution of 28 per cent of revenue from central taxes to States and an additional 1.5 per cent of central taxes in lieu of additional excise duties on sugar, cotton and textiles. Ridiculing the recommendations, Naidu said, "The unilateral decision on the recommendations by central government is not acceptable to us." He added that he would be writing to Prime Minister AB Vajpayee about his reservations on the recommendations. He felt that the commission had favoured the Union Government at the expense of the just needs of the States. Considering that the EFC's recommendations were adversely effecting the fabric of fiscal federalism of the country, Naidu expressed the need for an open national debate on the issue before it was put into operation.

He told newspersons here on Saturday that while the over-all ceiling was pegged at 37.5 per cent of the gross central revenue receipts, the states had so far received mere a 29.5 per cent.

Interestingly, during 1993-95 state governments had received the highest ever share from the central receipts which was in the tune of over 44 per cent. Naidu felt that the total apportionment to the states must be over 52 per cent on the gross central revenue receipts. While during 1991-92 the state's share was about 39.88 per cent it was reduced to 34.75 per cent in the year 1999-2000. Naidu accused EFC of rewarding non-performing states at the expense of reforming and performing states. While pointing out the `partisan' attitude of EFC, Naidu said of the aggregate transfers to states, about Rs 2,26,320 crore which accounts for 52 per cent had been allocated to Bihar, UP, MP, WB and Orissa.