Vasundhara Raje demands fiscal federalism

New Delhi, Dec 9 (UNI) Suggesting setting up of Federal Council to oversee and enforce implementation of awards such as that of the Finance Commission, Rajasthan Chief Minister Vasundhara Raje today said there is a need for evolving a mechanism to ensure implementation of the recommendations of the Finance Commissions which had been duly accepted.

Participating in the 52nd meeting of the National Development Council, convened by Prime Minister Manmohan Singh, here Ms Raje said there were five important issues impinging upon fiscal federalism and Centre-State relations which include the implementation of the accepted recommendations of the Finance Commissions, proper implementation of debt consolidation and debt waiver, as recommended by the 12th Finance Commission, politics to be kept aside while dealing with disasters and natural calamities and untied central assistance as suggested by former Planning Commission Chairman V N Gadgil.

Elaborating the points, the Chief Minister pointed out that an important recommendation of the 11th Finance Commission remained unimplemented till date, causing unjust loss to states, to shore up the revenue and fiscal deficits of the Centre. ''I refer to the balances of over Rs 5000 crore in the Fiscal Reform Facility which Union Finance Ministry had unfairly and, to our mind, illegally decided to lapse to itself.'' She said despite the State government's best efforts, nothing had been done in this regard. Several other states, including some from the North-East which were entitled to receive additional incentives from the balances of this Fund, were equally upset.

Therefore, there was a strong case of involving a mechanism, such as a Federal Council, to oversee and enforce implementtion of awards, she added.

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