Finance Ministers from five opposition-ruled states will convene on September 12 to address concerns over significant cuts in Central financial allocations. The meeting, including representatives from Kerala, Karnataka, Telangana, Tamil Nadu, and Punjab, aims to advocate for a fair distribution of resources in the upcoming 16th Finance Commission.

This conclave is seen as a strategic move to exert pressure on the BJP-led central government. The 16th Finance Commission, chaired by Dr. Arvind Panagariya, has recently started its operations, prompting states to voice their grievances over past financial decisions.

According to a government source, states like Kerala have experienced considerable reductions in Central funds, contrary to past allocations. For example, Kerala's share was reduced from 3.875% in the 10th Finance Commission to 1.92% in the 15th Finance Commission, while Uttar Pradesh saw a slight increase in its allocation.

Kerala Finance Minister K N Balagopal has been a prominent critic of these financial disparities, arguing that such decisions have led to severe limitations for several states. Balagopal has emphasized the need for reforms in the financial relationship between the Centre and states to strengthen cooperative federalism.

Officials view the meeting as an important opportunity to highlight these issues to the 16th Finance Commission. The united stance of the participating states is seen as crucial for advocating a more equitable financial distribution.

The conclave, to be inaugurated by Kerala Chief Minister Pinarayi Vijayan, will feature discussions on the developmental and financial challenges faced by states. Key participants include Telangana Deputy Chief Minister and Finance Minister Bhatti Vikramarka Mallu, Karnataka Revenue Minister Krishna Byre Gowda, Punjab Finance Minister Harpal Singh Cheema, Tamil Nadu Finance Minister Thangam Thennarasu, and Leader of the Opposition in the Kerala Assembly V D Satheesan. The event will also be attended by finance secretaries from the participating states and experts such as former Economic Advisor Arvind Subramanian.

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