Funds share -- Jairam disagrees with own govt

Funds share -- Jairam disagrees with own govt
K.R. BALSUBRAMANYAM

BANGALORE, AUG 20: While Karnataka and several other states are preparing for a major showdown with the Centre over a ``sharp fall'' in allocations under the Eleventh Finance Commission (EFC) award, State Planning Board Deputy Chairman Jairam Ramesh has come out strongly against the stand taken by these states.

In an exclusive interview to The Indian Express, Ramesh said he did not share Chief Minister S.M. Krishna's view that the EFC's recommendations have gone against Karnataka's interest.

Though he works in the State Planning Board under the chairmanship of Krishna, Ramesh said: ``As Deputy Chairman, I understand the CM's compulsions to write to the PM. But as an individual with an independent perspective, I don't think it's right.''

Ramesh provided figures to counter the CM's assessment and show how the state had actually gained. He said the allocation for Karnataka had gone up, if not the percentage points. Of the total transfers of Rs 4,34,905 cr for 2000-05 under the EFC, Karnataka's share will be Rs 19,692 cr. Under the Tenth Finance Commission (TFC), the total transfers were Rs 2,26,643 cr of which Karnataka's share was Rs 10,521 cr. Percentage-wise, the fresh allocation is down by just 0.1 per cent, from 4.6 to 4.5, he said.

On Krishna's demand for a National Development Council (NDC) or inter-state council meet to discuss the issue, Ramesh felt it is incorrect to make such a demand. ``This has never happened before. The NDC meeting has never been held to discuss the recommendations of a Finance Commission ,'' he said.

Ramesh, who is also secretary in the AICC Economic Affairs Cell, criticised Andhra Chief Minister N. Chandrababu Naidu for his efforts to drum up support against the Commission by convening a meeting of CMs in New Delhi on Monday.

``By doing this, we are introducing a neo-caste system such as better, middle etc., among states. I don't agree with this. Karnataka and Andhra have been beneficiaries of public investments in the past,'' he said.

Ramesh insisted that poorer states needed help to overcome their handicaps. ``States like Andhra, Karnataka, TN and Maharashtra that have benefitted during the past 50 years have a moral responsibility to help weaker states,'' he said.