The following article was written for MyInd Makers. Pasting it here for reference:
In early 2018, one of the biggest lies that the Indian media began to perpetrate was that the terms of the 15th Finance Commission (FC) are going to create a North-South divide in the country. The lie first began in (where else!) The Wire (“It is becoming almost untenable for Tamil Nadu and Kerala to thrive in the Indian union as rational, self-interested sub-units.”).
This was further propagated by telugu politician Pawan Kalyan and then later on aided lopsided articles by the largest circulated telugu newspaper, Eenadu. The other English media picked on these lies and bombarded us with editorials (“Divided we fall” screamed The Hindu!) on how Modi government should not create a North-South divide when it comes to such resource distribution.
The Finance Ministers of Karnataka, Kerala and Andhra Pradesh, along with the Chief Minister of Puducherry met to apparently to highlight how the “South Indian” states are going to lose a lot of money. TRP-centric TV media even ran programs that discussed “Pawan Kalyan and Kamal Haasan to end South India's slavery?”
The basis for all these lies was the Gazette notification of the 15th FC. The 15th FC has now submitted their interim report and every single liar from 2018 has gone total silent. Because every single propaganda and lie they have peddled have been busted with the reality of the actual recommendations of the 15th FC.
Propaganda Lie#1 and the reality now: The issue of tiny fonts
In 2018, The Wire told us that the change of criteria from 1971 to 2011 census “was done with such little fanfare and in fonts so tiny that it made one wonder if those who sought it wanted no one to take notice.”
Fonts so tiny? Such little fanfare? Please take a look at the Gazette notification. The font is the same across the entire document! The population criterion is placed at the same bullet point, as was done in all previous FC references. Did you know, dear reader, that all Finance commissions from the 6th FC to the 14th FC were asked to take the 1971 census data as reference? Even the original terms for 14th FC (2015 to 2020) was to consider the 1971 population census data! Imagine considering 40-year-old data for today’s decision!
It was the Modi government that took the fundamentally correct decision that the 15th FC (2020 to 2025) must consider the more recent 2011 population data and not the outdated 1971, and the 14th FC should consider both the 1971 and 2011 census!
Propaganda Lie#2 and the reality now: Southern states did an awesome job at population control, yet will be penalized heavily for performing well
The next argument of all these liars was that since 1971, many states have performed well in terms of controlling their population and therefore will be at a disadvantage if 2011 census is considered. Why? Because they made the automatic assumption that performing states will not be rewarded but penalized!
Here is the truth. For the first time ever, the terms of reference for a finance commission included a number of “proposing measurable performance-based incentives for States”. This included “efforts made by state towards replacement rate of population growth”! No one had to protest; no one had to shout; no one had to spread lies for the Narendra Modi government to have come up with this criterion by themselves.
In Feb 2020, the 15th Finance Commission has submitted its interim report. The below table compares the percentages allotted to population:
So not only has the commission considered only the 2011 census, it has also reduced the percentage of importance given to population alone. In an ideal world this must lead to apologies from all the liars, but such kind of niceties are simply too much to expect.
Where does the other 12.5% go to? To a new criterion called The Demographic Performance. This criterion “has been introduced to reward efforts made by states in controlling their population”. You hear that dear Wire the Liar? You hear that dear Pawan Kalyan? You hear that dear entire media that went berserk at that point of time? States are now going to be rewarded for performance!
Propaganda Lie#3 and the reality now: Modi wants more money to come to the centre and less money to go to the states.
Up until the 13th FC, the states in India got 32% of the money that the central government earned. The 14th FC recommended to increase this to 42%. Narendra Modi’s government did not flinch before accepting this recommendation. If Modi wanted more money, why would he give a massive 10% more money to the states?
They emphatically told us that “the Centre’s attempt to increase its share from the divisible pool of resources from the present 58% is something that should concern all States, whether populous or not.”
They arrived at this massive conclusion merely because the terms of reference of 15th FC asked them to review “the impact” of the 10% additional devolution. They twisted this to tell us that the 15th FC was asked to review “the recommendation” in itself! But now, guess what? The 15th FC recommended that states get 41% of the money central government earns.
A whopping and massive 1% drop! And even this 1% drop was necessitated because of the creating of two new Union Territories – J&K and Ladakh, and not because Modi wanted to increase his share!
Propaganda Lie#4 and the reality now: South states collect more tax than anyone in the universe and get back only peanuts.
Actually, this propaganda is continued till date. KCR’s son, KTR went on an overdrive telling us that Telangana gives more than it gets. Guess what the 15th FC did? Added other criteria in its devolution formula – Tax Effort – and this criterion has been used to reward states with higher tax collection efficiency. You hear that Mr. KTR? States will higher tax collection efficiency will actually get rewarded! Did you also know that this is the first time this criterion is being employed? Unprecedented no? Warrants a great headline and equally great editorials no? Alas!
In addition to this, the Commission has recommended special grants to Karnataka, Mizoram, and Telangana, aggregating to Rs 6,764 crore. Also, in addition to all these, Andhra Pradesh continues to be reimbursed for being a revenue deficit state (~6000 crores for the year 2020-2021). Chandrababu Naidu and a lot of TDP cadre had raised unprecedented noise and spread unprecedented lies over the revenue deficit.
The entire table for devolution criterion is as below.
The 15th FC must be commended for the unprecedented job they have done, amidst the unprecedented hatred they had to endure. The Wire and all their cohorts must be condemned for the unprecedented hatred and divide they sought to sow to the foundations of India. It is yet another pity that all these liars go unpunished for spreading such pathetic lies.
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