Kerala Hosts Conclave with Opposition States to Discuss Finance Needs
Thiruvananthapuram, Kerala – The Kerala government will host an interstate conclave with five opposition-ruled states to discuss their fiscal needs in the upcoming 16th Finance Commission, state Finance Minister KN Balagopal announced.
Participating States
Besides the left-ruled Kerala, the conclave will include:
- AAP-ruled Punjab
- DMK-governed Tamil Nadu
- Congress-ruled Karnataka
- Congress-ruled Telangana
The event is seen as an effort from these states to demand more funds from the NDA-led central government.
Event Details
The conclave will be inaugurated on September 12 by Chief Minister Pinarayi Vijayan, with the state opposition leader also participating. Finance ministers and secretaries from the five states will attend, along with renowned economists and administrative experts.
Key Discussions
There will be detailed discussions on various aspects of the finance commission, including how states are representing their needs and the major issues to consider. Economist Aravind Subramanyam, former finance advisor to the union government, will also be present.
Importance of the Conclave
KN Balagopal emphasized the importance of this event, as the 16th Finance Commission will complete its meetings and prepare reports next year. The commission, chaired by Arvind Panagariya, was constituted on December 31, 2023, and will make recommendations for a five-year period starting April 1, 2026.
The commission is also tasked with reviewing current disaster management financing arrangements and making appropriate recommendations.
Finance Commission’s Role
According to the 15th Finance Commission’s recommendations, the central government should allocate 41% of tax collections to states, known as vertical devolution. The distribution among states, or horizontal devolution, is based on criteria like demographic performance, income, population, area, forest and ecology, tax, and measures to check fiscal deficits by individual states.
Doubts Revealed
Kerala -: Kerala is a state in the southern part of India. It is known for its beautiful backwaters, beaches, and rich culture.
Conclave -: A conclave is a meeting or gathering where people discuss important topics. In this case, it is about finance.
Opposition States -: Opposition states are those where the ruling party is different from the central government. They often have different views and policies.
Fiscal Needs -: Fiscal needs refer to the financial requirements of a state. This includes money needed for development, public services, and other expenses.
16th Finance Commission -: The Finance Commission is a group set up by the Indian government to decide how money should be shared between the central and state governments. The 16th Finance Commission will start its work from April 1, 2026.
Finance Ministers and Secretaries -: Finance Ministers are the people in charge of money matters in a state. Secretaries are senior officials who help them.
Economists -: Economists are experts who study how money and resources are used. They help in making financial decisions.
Aravind Subramanyam -: Aravind Subramanyam is a well-known economist who has worked with the Indian government. He gives advice on economic policies.
Recommendations -: Recommendations are suggestions or advice given by experts. The Finance Commission will give recommendations on how to share money between the central and state governments.
