Thursday, August 24, 2000,
Chandigarh, India


M A I N   N E W S

CMs to meet again
Finance Commission award

HYDERABAD, Aug 23 (UNI) — Chief Ministers of the state adversely affected by the award of Eleventh Finance Commission (EFC) would meet again after the “final report” was submitted to safeguard the interests of the progressive states, Andhra Pradesh Chief Minister N. Chandrababu Naidu informed the state Assembly today.

Making a statement in the House on the joint memorandum submitted to the Prime Minister by Chief Ministers of the affected states, he said another meeting was planned to bring their views to the Centre’s notice on the issue.

Mr Naidu said EFC Chairman A.M. Khusro had assured the delegation of Chief Ministers that justice would be rendered to the states pursuing reforms in the final report to be submitted in the next 10 days. The delegation had “convinced” Mr Khusro they were not against providing funds to backward states but impressed that they were badly affected by the EFC award.

He said in the wake of the acceptance of the EFC report 17 of the 25 states would stand to lose in the quantum of total transfer on Central revenues.

Claiming that Andhra Pradesh would lose Rs 3,685 crore over a five-year period, Mr Naidu said this financial loss would not only seriously affect the fiscal health of the state and others but also send a wrong signal that perpetuating poverty and non-performance pays.

CHENNAI: Tamil Nadu Chief Minister M Karunanidhi on Wednesday expressed a view in consonance with Prime Minister A.B. Vajpayee that there was no need for convening the Inter-State Council meeting to take stock of the “adverse impact” of the recommendations of the Eleventh Finance Commission (EFC) but demanded a special arrangement to compensate the adversely affected states.

Asked about the Prime Minister rejecting the demand for a meeting of the Inter-State Council, suggested by the Chief Ministers’ conference convened by Andhra Pradesh Chief Minister N. Chandrababu Naidu in Delhi, Mr Karunanidhi said he too held the view that there was no need for such a meeting.

However, the importance of the issue could not be under-estimated just because he had said there was no need for the meeting. Mr Karunanidhi expressed confidence that the Centre would take some arrangement to allot special funds to states let down by the EFC.

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