The fall in revenue of State of Kerala for FY 20-21 due to the 15th Financial Commission recommendations is a whopping Rs.4367.9 crores as the state's share is reduced from 2.5% to 1.943%!
The price we pay for good governance!
The price we pay for good governance!
This Union Budget only provided Rs. 7,84,180.87 crores to all States, which is just 32.4% of the total receipt budget of Rs. 24,20,089.99 crores.
This is a drastic reduction compared with 36.3% of what shared in 2015-16, when the divisible pool was made to 42%!
This is a drastic reduction compared with 36.3% of what shared in 2015-16, when the divisible pool was made to 42%!
To get another perspective, Kerala got 0.91% of the total receipt budget in 2015-16 FY, this year that is reduced to 0.63% of the receipt budget 2020-21.
If Kerala's share would have remained at 0.91%, Kerala would have got Rs. 21,997.36 crores instead of Rs. 15,236.64 crores!
If Kerala's share would have remained at 0.91%, Kerala would have got Rs. 21,997.36 crores instead of Rs. 15,236.64 crores!
The difference is Rs. 6,760.72 crores!
So Kerala suffering on 2 counts, firstly due to the new formula by the 15th FC &secondly due to the reduction of the divisible pool by the Union by tweaking taxes! (All States are suffering due to 2nd)
Co-op federalism in all its glory!
So Kerala suffering on 2 counts, firstly due to the new formula by the 15th FC &secondly due to the reduction of the divisible pool by the Union by tweaking taxes! (All States are suffering due to 2nd)
Co-op federalism in all its glory!
About the Second one, which affects all States...
If anyone want to understand how they are tweaking the divisible pool and engages in smash & grab, please read this article by me to understand the heist!
nationalheraldindia.com/india/exclusiv…
If anyone want to understand how they are tweaking the divisible pool and engages in smash & grab, please read this article by me to understand the heist!
nationalheraldindia.com/india/exclusiv…
Kerala got Rs.16,955.61 crores in FY 2017-18, the present share proposed in FY 2020-21 is Rs. 15,236.64 crores. consider the inflation in last 4 years!
Then you will understand, how much we are being penalised for better health, population control and other HDI parameters!
Then you will understand, how much we are being penalised for better health, population control and other HDI parameters!
Prima facie, it looks Kerala will loss 22.28% revenue from Divisible pool as 15th FC reduce share from 2.5% to 1.943%!
But if we consider the tweak of taxes and reductions of divisible pool, this becomes a staggering 30.77%! (When as 0.91% of Revenue Budget reduced to 0.63%)
But if we consider the tweak of taxes and reductions of divisible pool, this becomes a staggering 30.77%! (When as 0.91% of Revenue Budget reduced to 0.63%)
I really wonder how much fiscal space is now left for @drthomasisaac?
How State will find resources to fill this huge gap?
Remember Sir CP exactly warned us about this heist!
How State will find resources to fill this huge gap?
Remember Sir CP exactly warned us about this heist!
Though TN this time did not much affected by 15FC recommendations, the tweaking of taxes falling in the divisible pool, hit them also very hard.
But unlike Jayalalitha, the present TN leadership is not making any protest and kow-towing before farcical federalism by Modi
But unlike Jayalalitha, the present TN leadership is not making any protest and kow-towing before farcical federalism by Modi
