07/05/2018
A note on the Terms of Reference of 15th Finance Commission and its implication on Pondicherry U.T
Dear (Origin-al Pondicherrians),
As the terms of reference of 14th Finance Commission has come to an end in 2017-18, the 15th commission is constituted with New Terms of Reference.
You may be aware that under the earlier Finance commissions, particularly in 13th and 14th, we were insisting Central Govt to include U.T of Puducherry, which has a legislature, into the Terms of Reference of Finance Commission. But we misserably failed in our atempt.
Now, even in the 15th Finance Commission, which has life of 5 years, Puducherry is not included because its an UT with legislature.
The implication of this is that, 15th Finance Commission has no mandate in devolution of funds to Pondicherry because Pondicherry has a legislature.
As per the new devolution formula, now the Centre: State revenue sharing is at 58:42 percent. This means that 42 percent of Central revenue will go to States. But not Pondicherry, because Pondicherry is not in the Terms of Recetence of 15th Finance Commission.
For the UT of Puducherry, which is worst hit by fincancial crisis, the current terms og 15th Finance Commission could do more harm.
I suggest few remedies to over come this situation.
1. In Oct 1949, (before merger with Indian Union) while addressing in Indian Parliament, Pandit Jawaharlal Nehru said If Pondicherry merges with India, its financial burden will be taken care. Podicherrians should sensitise the Centre to keep up this promise.
2. Later, during merger, in the Treaty of Cession between India and France, there is a clear mention on how Pondicherry has to be administered, financially. Centre to be sensitised on the content of this doxument.
3. Our elected representatives may raise the issue in forums such as (a) inter-state council (b) resolution in UT legislature (c) resolution in Parliament (d) Reptesention to Union Home and Finance Ministry
4. Seeking an amendment to Sec.280 of Indian Constitution to treat UT with legislatire on par with a State. This is just an amendment to the definition of State, in our Constirution.
5. New Delhi is also an UT with legislature. But most committed expenditures of Delhi UT such as pension, police etc are taken care by the Unuin Govt and it receives 100 percent assistsnce for CSS. If such a practice is extended to Pondicherry, it will help overcome the current crisis situation .
To sum up, in reality, we are treated neither as State nor as UT. As of now there is NO CONSTITUTIONAL OBLIGATION to devolve Central funds to Pondicherry.
Govt and the people of Pondicherry should take steps to overcome the Financial Crisis.
Once its done, like Centre has committed expenditure on Defence, Education etc. It will have a committment to meet part of Puducherry's expenditure.
I welcome suggestions on this note.
Dr.Velmurugan.PS.
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