In recent days, numerous leaders in India’s South have spoken in one voice against the 15th Finance Commission — arguing that it is unfair to South Indian states. The bone of contention is a directive in the terms of reference given to the Finance Commission, which states that the distribution of revenues amongst states should be based on the 2011 census, as opposed to the 1971 census. During this period, South Indian states have fared well in controlling their population, while Bihar, Uttar Pradesh, Madhya Pradesh, Rajasthan, and Uttar Pradesh – all northern states – have been unsuccessful. South Indian states have put forth the argument that they have been penalized for controlling their population, while states which have not fared particularly well have been rewarded.
Some leaders have also objected to the commission dubbing important welfare schemes as ‘populist’ without understanding the economic and social dynamics of different states.
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