July 24, 2016
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Restructuring of Centre-State Financial Relations Pre-requisite for Equitable Resource Distribution: Pinarayi

 

Following is edited excerpt of Kerala Chief Minister Pinarayi Vijayan’s speech at the 11th meeting of Inter-State Council, held in New Delhi on July 16:

I am happy that the government of India has convened this meeting of the Inter-State Council, though after a long gap. It is a pity that this national forum has not been active over the years. Let me take this opportunity to strongly recommend that at least two meetings be held every year to discuss well-defined agenda, suggested by state governments and the ministries of the government of India. The agenda may be circulated at least three months in advance with an active mechanism for prompt follow-up. I would like to add that, in the absence of the National Development Council, there is a felt-need to discuss developmental issues thoroughly in this forum.

The Punchhi Commission has given very interesting and fundamental recommendations, which have the potential of restructuring centre-state relations. However, considering the fact that more than six years have elapsed since the commission submitted its report, there is a need to look at the recommendations afresh and in-depth. Moreover, a consensus has been arrived at regarding the key recommendations to operationalise them. Therefore, I tend to agree with the suggestions of the government of India that the Punchhi Commission’s recommendations be discussed in the Standing Committee. The Inter-State Council can then formally adopt those which have an activity-wise and time bound plan for implementation. I would like to suggest that a system similar to the Empowered Committee for VAT and GST would be effective, since there is need for continuous action.

I am extremely proud to say that Kerala is the leader in the country in Aadhaar enrolment, touching 96 per cent coverage, evenly across the state. As a result of this, the state became the first to be chosen for electronic payment of wages to all its workers under the Mahatma Gandhi National Rural Employment Guarantee Scheme. The state has also achieved universal financial inclusion and has the highest mobile penetration in the country. But even with this triple achievement, we realise that due caution must be exercised before embarking on direct benefits transfer. Care should be taken to ensure that significant sections of the population, especially the vulnerable groups, are not excluded. Therefore, it should not be made mandatory at present particularly for the implementation of schemes like MGNREGS. It is required urgently to put in place the last mile connectivity between financial institutions and the citizen. Here, the vast network of post offices can be put to effective use, considering their legacy and the warm acceptance of the village postman by the community.

The restructuring of centre-state financial relations is a pre-requisite for ensuring equitable distribution of national resources among states and for bridging the gap between various states. I would like to take this opportunity to demand that the centre-state financial relations should be restructured in such a way that the imbalance that prevails among various regions can be rectified in the true spirit of federalism. It is rather unfortunate that the union government has chosen to dismantle the Planning Commission which has been in existence right from the initial years of independence. I am of the firm opinion that the dispensation of Planning Commission should be restored so that even the remote areas too will figure in the comprehensive and planned development of the nation.

As Kerala is strategically positioned, we have deep concerns on internal security issues. We are not complacent; we are alert and have been keeping an eye on the activities of potential groups. I am happy to state that there has been a good interaction between central security and intelligence agencies and the state police machinery. But it could be strengthened more. The left wing extremist activities in the northern districts are being taken serious note of. But financial assistance, logistic support and technical expertise of human resources from the government of India would greatly help us to step up our efforts. We should be allotted a counter insurgency & anti-terrorism (CIAT) school which we have been demanding for the last three years. We would like to have one more IR battalion, some officers on deputation from CAPFs, and also training of our police by NSG, CAPFs and IB. All the five left wing extremism-affected districts must be brought under the security related expenditure scheme. There should be special scheme to upgrade and modernise our intelligence set up in police.

Recent report of some Keralites joining banned terrorist organisations abroad have been considered with due seriousness by the state government. The matter is being handled legally with due sensitiveness. But more support and assistance from central agencies is needed in the collection of intelligence. We do expect every support in investigations too.

More legislations relating to safety of women and children are being considered by the state. I am pained to learn that the government of India has not released Nirbhaya Funds to the states. I would request the Prime Minister to look into this. The grants of the government of India for police modernisation are inadequate. This year, the state has been assured of only Rs 14 crore in the non-plan and no grants in plan expenditure have been received. The government of India may consider allotting more funds to the performing states like Kerala.

Kerala’s coast is vulnerable. It would be desirable for the 76 police stations on the coast to have at least one small boat which is sea-worthy to go into the shallow areas of the sea near the coast. The government of India could consider giving us the promised grant to start a coastal police training school in the state. One Marine IR Battalion may also be allotted to the state to strengthen coastal security.

Kerala has marched on its own in respect of education, spending huge resources with long term commitments. Having achieved this, the issues now relate essentially to quality upgradation, a real second generation issue. Unfortunately, national policies and programmes still focus, rightly so, on the basic issues. All that I request for is greater flexibility to the state to adjust the existing schemes to its needs on the basis of mutual dialogue and discussion. I am happy to inform all of you that the state is committed to spend Rs 1,000 crore over the next five years for raising the level of 140 schools to international standards. Further, Rs 500 crore is earmarked for making ‘high-tech’ all classes from Standard VIII to XII. I request the minister of human resource development to extend help for these programmes without compromising on the core objective.

On the issue of improving quality of education, it is necessary to ensure that humanistic and secular values are deeply embedded in curricula as well as in the pedagogy even while infusing modern technology to upgrade quality. Here again, the focus should be on inclusion and strengthening of the public system at all levels. I hope today’s meeting will result in concrete and fruitful decisions useful for all the participating states and the centre.