13TH FINANCE COMMISSION FISCALLY STARVES TRIPURA

Haripada Das

TO tame a state defying the anti-people liberalisation policies dictated by the centre, the UPA-2 government has adopted a policy not to beat but to weaken it by fiscal starvation through downgrading award of 13^th Finance Commission, said Badal Chowdhury, finance minister, government of Tripura on August 16, 2011. Chowdhury was addressing the media while releasing a white paper, ‘13th Finance Commission Report – A Review’ which contains elaborate item-wise statistical data that vindicates gross deprivation of the state of Tripura, compared to the other states including those having rich resources. This deprivation caused an unmanageable financial crunch for the government to pay salaries to its employees, pension to the retired employees and release of DA and DR at par with central rate, Badal Chowdhury informed.

In the preface, the document reads “The 13^th finance commission award has significantly underestimated the state’s financial requirements and failed in appreciating circumstances specific to Tripura”.

Explaining the specific circumstances, the document stated that the 13^th FC regrettably failed to realise the ground reality behind the higher government employment in the state among the NE states. The state had to be lacerated for decades due to extremist onslaught and necessitated to raise as many as 13 TSR battalions (Indian Reserve Battalions) who successfully helped in containing violence and restoration of peace and tranquility in the state. Also the 13^th FC did not consider the limited presence of private sector as well as public sector in the state thereby limiting the scope of employment of the innumerable unemployed youths. Even after exercising all avenues for government employment, there is a huge brigade of unemployed in the state.

Honouring the electoral pledges made by Left Front, the state government did not accept some of the recommendations of the 12^th FC in line with liberalisation policies. Those are: adoption of New Pension Scheme, closure of all loss making PSUs instead of providing them financial assistance for making them self-reliant, abolition of vacant posts, ban on new recruits etc. If the prescription of the centre was complied with, the Left Front government would have had to retrench no less than 30,000 employees in various sectors.

Regarding item-wise award of the 13^th FC, Badal Chowdhury informed that against the state’s demand of Rs 13,924.43 crores for salary expenditure, the 13^th FC awarded Rs 7727.90 cr, leaving the deficit of Rs 6,196.53 cr. For pension expenditure, the 13^th FC awarded Rs 2,779.09 cr against the state’s demand of Rs 3,944.80 cr creating a deficit of Rs 1,165.71 cr. The 13^th FC also made a wide gap in non-plan revenue expenditure by sanctioning Rs 3,192.26 cr against the state’s requirement of Rs 4,234.61 cr leaving a shortfall of Rs 1,039.35 cr. In non-plan gap grant the commission granted Rs 4453.00 cr. which is even far less than Rs 5494.20 cr awarded by the12^th FC (See Table 3 & 5). In total, the 13 FC alloted only Rs 16,349.13 cr against the state requirement of Rs 26,848.76 cr leaving a shortfall of Rs 10,499.63 cr. (See Table 1 & 4)

In contrast to all other previous finance commissions which took the last year of the tenure of former commission as the base year for estimation of the committed expenditure in the successive years, the 13^th finance commission adopted a normative formula that had taken salary expenditure in 2005-06, ie, the first year of the tenure of 12^th finance commission and pension expenditure in 2007-08 as the base years for estimating the expenditure on salary and pension during the tenure of the13^th FC. By adopting this policy, the 13^th FC quietly ignored the enhanced liabilities on salary and pension due to revision of pay, regularisation of DRW/contingent workers/fixed pay employees in the year 2009-10 apart from the new recruitments that were made after 2005-06. Though most of the states more or less suffered with this normative formula, the states having wider resources would be able to manage this loss. But Tripura with its limited resources was hit hardest with this new policy.

The 13^th FC recommended year to year decrease of growth of expenditure on salary from 1.54 per cent in years 2011-12 to 0.89 per cent in 2014-15. While most of the states were awarded with static or rising yearly growth rate of 5 per cent to 6 per cent in average, Tripura had been awarded with diminishing growth rate and that too lowest among all states. Any layman can appreciate that, not to speak of releasing of DA, even paying of normal annual increment of 3 per cent would be impossible with such declining growth of allocations. (See Table -2)

The deprivation of the 13^th FC to the state was brought to the notice of the union finance minister Pranab Mukharjee several times in writing. But no remedial step was ever taken. When the state finance minister met Mukharjee, he summarily turned down the state’s demand for providing special assistance to overcome the present fiscal impasse. Expressing annoyance for non-compliance of the new economic reforms, he informed that he is binding with the 13^th finance commission and unable to extend any help beyond the commission’s award, Badal Chowdhury informed. But recently the centre has assured financial incentive of an extent of more than Rs 21,000 cr to Mamata Banarjee government in West Bengal and this was made in addition to the 13^th FC award. Though we have nothing to object in extending financial boost to West Bengal, which is now ruled by an alliance led by Trinamul Congress, the second biggest alliance partner of UPA, rigid approach to a more backward resource-crunch states like Tripura which is ruled by the Left Front opposed to ruling alliance at the centre, would signal a wrong message to the centre-state relations which is unwanted in a federal democratic system like in India, Badal Chowdhury asserted.

The way for getting rid of this fiscal impasse, lies on the central government. As the state’s own resources are very limited, the fiscal crisis created because of the 13^th FC award can be resolved through sincere initiatives by the planning commission, the finance ministry and other ministries of government of India. The planning commission must come forward to sanction the state a special plan assistance of at least Rs 1500 cr to fill up the gap of negative balance from current revenue(BCR). As the BCR is likely to widen negatively in the successive years of the 13^th FC, special plan assistance should be increased by Rs 500 cr every year. In addition, the government of India should extend interest free loan and advance SPA of Rs 1000 cr every year in the remaining years of FC to resolve the problem under Art 293 of the constitution, Badal Chowdhury demanded. The government of India can also reimburse the recurring expenditure on security including that of TSR/IR battalions which had to be raised to combat extremist outfits for maintenance and restoration of peace and tranquility in the state.

Table 1

Item wise short-fall shown in the following table

(Rs in Crores)

SL	Item	State’s Assessment	13th FC’s Award	Shortfall
1	Salary	13924.43	7727.90	6196.53
2	Arrear salary	2200.00	0.00	2200.00
3	Interest payment	2544.93	2649.88	-104.95
4	Pension	3944.79	2779.09	1165.70
5	Others	4234.61	3192.26	1042.35
	Total	26848.76	16349.13	10499.63

Table 2

Award of the 13^th FC on Salary Expenditure with year-wise growth rate

(Rs in Crores)

SL	States	Total Salary Expenditure	Year to year Growth Rate
		2010-15	2011-12	2012-13	2013-14	2014-15
1	AP	83638.63	5.95	5.95	5.95	5.95
2	Arunachal P	4438.27	6.00	6.00	6.00	6.00
3	Assam	35760.19	2.75	2.65	2.54	2.42
4	Bihar	51584.79	5.92	5.92	5.92	5.92
5	Chhattisgarh	21180.44	8.71	8.87	9.03	9.17
6	Goa	3764.89	6.00	6.00	6.00	6.00
7	Gujarat	28762.64	4.48	4.43	4.37	4.32
8	Haryana	36387.99	5.99	5.99	5.99	5.99
9	Himachal P	20024.90	2.27	2.13	1.99	1.83
10	J & K	28691.10	3.42	3.35	3.29	3.22
11	Jharkhand	27232.66	8.61	8.75	8.88	9.01
12	Karnataka	29874.95	4014	4.07	4.00	3.92
13	Kerala	31679.80	5.97	5.97	5.97	5.97
14	MP	57609.69	6.00	6.00	6.00	6.00
15	Maharashtra	76498.80	5.23	5.21	5.19	5.17
16	Manipur	6671.89	3.62	3.56	3.50	3.44
17	Meghalaya	5190.80	6.00	6.00	6.00	6.00
18	Mizoram	4381.41	5.55	5.55	5.55	5.54
19	Nagaland	7536.91	2.42	2.29	2.16	2.01
20	Orissa	36688.62	5.96	5.96	5.96	5.96
21	Punjab	48940.52	5.24	5.23	5.22	5.22
22	Rajasthan	58811.27	4.15	4.12	4.08	4.04
23	Sikkim	3192.19	6.00	6.00	6.00	6.00
24	Tamilnadu	43207.39	5.96	5.95	5.95	5.95
25	Tripura	7727.90	1.54	1.34	1.12	0.89
26	UP	89043.78	6.00	6.00	6.00	6.00
27	Uttarakhand	15225.45	8.33	8.52	8.69	8.86
28	West Bengal	44521.82	5.98	5.98	5.98	5.98

Table -3

The Non-Plan gap grant recommended by the 13^th FC is far less than even the 12^th FC as shown below:

(Rs in Crores)

Year	1st Year	2nd Yr	3rd Yr	4th Yr	5th Yr	Total
12th FC	1041.91	1064.30	1122.91	1131.90	1133.18	5494.20
13th FC	1054.00	934.00	1030.00	835.00	600.00	4453.00
Difference	12.09	-130.30	-92.91	-296.90	-533.18	-1041.20

Table 4

State wise comparison of awards of 12^th FC and 13^th FC on Share of Central Taxes + Non Plan Gap Grant + others

(Rs in Crores)

SL	States	Award of 12th FC	Award of 13th FC	% of increase
1	AP	50353.26	114148.20	126.69
2	Arunachal P	3525.56	9103.60	158.22
3	Assam	24329.40	57832.70	137.71
4	Bihar	75646.83	172944.10	128.62
5	Chhattisgarh	18273.70	42000.70	129.84
6	Goa	1724.53	4374.00	153.63
7	Gujarat	25608.75	53789.40	110.04
8	Haryana	8042.44	19470.30	142.09
9	Himachal P	14450.36	21661.70	50.11
10	J & K	20879.98	40438.60	93.67
11	Jharkhand	23657.02	47878.60	102.39
12	Karnataka	31416.28	74376.40	136.74
13	Kerala	19607.72	40325.80	105.66
14	MP	46321.96	116593.50	151.70
15	Maharashtra	36194.25	91709.80	153.38
16	Manipur	6870.20	13567.50	97.48
17	Meghalaya	4367.77	9842.50	125.34
18	Mizoram	4660.91	8805.30	88.92
19	Nagaland	7453.41	13744.20	84.40
20	Orissa	36942.77	78974.90	113.78
21	Punjab	12884.59	25686.60	99.36
22	Rajasthan	39062.47	97842.00	150.48
23	Sikkim	1829.14	4525.60	147.42
24	Tamilnadu	36688.13	83437.20	127.42
25	Tripura	8417.00	13127.50	55.96
26	UP	133471.45	312140.00	133.86
27	Uttarakhand	12194.32	20308.10	66.54
28	West Bengal	50877.28	117997.30	131.93

Tripura has second lowest increase in award amount over 12^th FC after Himachal Pradesh.

Table 5

Comparative statement of Gap Grant awarded to the Special category states by the 12^th FC and 13^th FC

(Rs in Crores)

SL.	Name of the states	Award by 12th FC	Award by 13th FC	% of increase/ decrease
1	Arunachal Pradesh	1357.88	2516.20	85.30
2	Himachal Pradesh	10202.38	7888.80	-22.68
3	Jammu & Kashmir	12353.46	15936.30	29.00
4	Manipur	4391.98	6056.60	37.90
5	Meghalaya	1796.86	2810.90	56.43
6	Mizoram	2977.79	3991.40	34.04
7	Nagaland	5536.50	8146.10	47.13
8	Tripura	5494.20	4453.30	-18.95

Courtesy: People’s Democracy

CPI (M) WILL BUILD UP MASS STRUGGLES IN WEST BENGAL

By our Special

Correspondent in Kolkata

THE CPI (M) West Bengal state committee has resolved to build up mass struggles with new vigour on peoples’ issues. The extended session of the state committee, held on August 21-22 in Kolkata, discussed the new political situation in the state and formulated Party’s tasks in the coming days.

The meeting concluded that the Party and the Left would play the role of a constructive opposition in the state. At the same time the Party will develop mass movement on issues affecting the livelihood of people. Party organisation will be remoulded to suit the existing reality. It was felt that the rectification process should be continued. The entire Party should dedicate itself to stand beside the poor people.

Party state secretary Biman Basu, concluding the two day discussion, said the ongoing attack on the Left should be resisted by mobilising the people. In building up struggles, the priority should be on class issues with a class outlook. Party committees and Party members have to increase their activities manifold. There should be increased emphasis on ideological training of the Party activists. Mass organisations are very important in this juncture and their mass activities should be widened. There is no reason to believe that the existing situation would continue forever.

Polit Bureau member Buddhadeb Bhattacharjee, in his intervention said the objective situation is that the people are reeling under price rise, unemployment and various other attacks of liberalisation. Corruption at highest level has created an increasing discontent among people. The Left should be prepared subjectively to cope with the situation. In West Bengal, the Left movement has advanced through building up mass struggles though many governments have been formed and broken up from 1967. We have to continuously hit the streets. The real strength lies with the people and we have to win back those who have voted against the Left through struggles only.

The session decided to reorganise the Party at different levels.

Courtesy: People’s Democracy

LEFT FRONT MEMORANDUM TO PM - ‘INTERVENE TO RESTORE PEACE & NORMALCY IN BENGAL’

MORE than one and a half thousand sitting and former representatives of the people staged a dharna in front of the Parliament House on August 25, at the call of the Left Front of West Bengal. The aim was to draw the country’s attention to the violent attacks against the Left Front cadre, offices and houses in the state, taking place with the backing of the TMC-Congress government of West Bengal. Later a 17-member Left Front delegation, accompanied by MPs from the state, met the prime minister and submitted to him a memorandum, apprising him of the threats to the democratic system in the state.

Later, Left front chairman Biman Basu addressed a press conference at AKG Bhawan, explaining that the Left Front has not been demanding any action under article 356 of the constitution, but only that the centre must not remain a mute spectator to the attacks. CPI (M) Polit Bureau member Sitaram Yechury was also present at the press conference.

Earlier, CPI (M) general secretary Prakash Karat, CPI general secretary A B Bardhan, RSP leader Abani Roy and Forward Bloc leader Debabrata Biswas addressed the huge dharna.

On this occasion, CPI(M)’s Kerala state secretary, P Vijayan, handed over to Biman Basu a cheque of more than Rs 3.5 crore, as the “first instalment” of Kerala people’s support to the Bengal victims and their families.

The following is the full text of the memorandum submitted to the prime minister by the Left Front committee, West Bengal, on August 25, 2011.

WE have met the governor of West Bengal on May 16, 2011 and on August 12, 2011 to apprise him of the reign of terror unleashed by the All India Trinamool Congress (AITC) following the declaration of the last assembly election results in West Bengal. In this connection, a delegation from the Left Front Legislature party in West Bengal also met the chief minister on June 3, 2011. Since then, the leader of the opposition has written six letters to the chief minister which proved to go in vain as there has been escalation of terror and violent attacks in the state.

We are fully aware that the law and order, as presently prevailing in the state, is primarily under the jurisdiction of the state government. However, in the background of recent developments in the left wing extremists affected areas in the southern part of the state and in the Hills, Dooars, Terai and adjoining areas in North Bengal, the present state of unrest has created distrust among the different linguistic people and is jeopardising the spirit and unity, integrity and harmony in these sensitive areas. We firmly believe that the union government cannot afford to be a silent spectator in a situation like this.

The Left Front government, when it was in office, fully agreed with your assessment of the left wing extremism as the greatest danger to the internal security of the country. There had been remarkable success in confronting this menace by the co-ordinated actions of the central and state governments, by the successful use of the joint forces. Unfortunately, the new government in the state has completely reversed this stand, thereby giving the left wing extremists a freehand to regroup and expand their area of operation much beyond what had existed ever before. The state administration, while keeping the joint forces idle, has concentrated its offensive against the leaders and workers of the CPI(M) in particular and those of the Left Front parties in general, who had been at the fore-front of the political, ideological and developmental process, in a word, multiform battle against the self-styled ‘Maoists’. Even the present ruling parties of the state are unable to carry out their political activities in those areas. Even the adjoining states have complained against the inaction of the West Bengal government in this regard.

The way the tripartite agreement has been signed on the problems of the Hills, keeping the opposition and, we believe, the PCC in West Bengal, in dark, will further complicate the situation there. Keeping on record the demand of Gorkha Jana Mukti Morcha (GJMM) for a separate state of ‘Gorkhaland’ and opening a pandora’s box by providing a high power committee to explore the possibilities for inclusion of new areas, from Dooars, Terai and Plains in the proposed Gorkhaland Territorial Administration (GTA) are clear departures from the understanding arrived at the tripartite meetings held when the Left Front government was in office. We believe, you will agree, that this will lead to discontent, particularly among the tribal and other people of the Dooars, Terai and Plains and resultantly will destabilise the situation in these sensitive areas. In view of the situation which has developed, there may be a threat to the security of the country.

In the situation stated above we are compelled to seek redressal of our grievances from you. A report of post-poll violence unleashed on the Left in this state as on August 15, 2011 is annexed herewith for your kind perusal and necessary intervention. As summary of this report reveals, 30 Left Front leaders and workers [CPI(M): 28, RSP: 2] have been killed and seven more were abetted to commit suicide during this period; 684 women were assaulted physically, 508 molested and 23 raped; 3785 persons had to be hospitalised for the treatment of injuries suffered by them and many more were forced not to lodge complaint and seek hospital treatment. There had been 2064 cases of arson and looting of houses and 14,081 persons were evicted from their place of living. Around 40,000 in total had to leave their homes under threat. To buy peace and stay in their home, people have been forced to pay money to the local AITC leaders and workers. According to a conservative estimate, total extortion amount thus paid might exceed Rs 277.7 million. A total of 758 Party, trade union and other mass organisation offices were either attacked, ransacked, burnt, forced to close or captured. 77 student union offices have been captured. Their office-bearers have been driven out, some of them forced to resign and even others denied to appear for their exams. There has been a widespread attack on the rights of the peasantry whereby 3418 ryots were denied the right to cultivate their own lands measuring about 9222.73 acres. Besides 26,838 number of patta holders and sharecroppers have been forcibly evicted from 9222.02 acres of patta and barga lands. While ‘Maoist’ and KLO militants are promised to be released as political prisoners, thousands of Left Front activists have been implicated in false cases on fabricated grounds including those instituted on the plea of the so-called recovery of arms. Even the Left Party organs have not been spared. 241 billboards displaying Ganashakti daily in public have been dismantled and thousands of its copies have been burnt and the hawkers have been beaten up in order to disrupt its circulation chain.

All democratic institutions, the panchayats, municipalities, co-operatives, different elected bodies of educational institutions have been made defunct either by attacks, intimidations or government fiats. Even in certain areas teachers, non-teaching staffs and students are not allowed to enter their institutions.

The state is in unrest. The districts affected by the terror unleashed by AITC, the jangal mahal region now made a sanctuary for the ‘Maoists’, the mounting tension in the Hills, Terai, Dooars and the adjoining plains in the North are glaring examples of this. Basic democratic rights of all sections of the people of the state are under threat. Even the INC, the partner of the ruling coalition, is not spared from these attacks. Even armed conflicts between the different factions of AITC are taking place. Anarchy has come to prevail over the rule of law. People of the state cannot be expected to remain a silent spectator in this situation for long.

We sincerely request you to take immediate remedial measures to restore peace and normalcy in the state.

Courtesy: People’s Democracy