J&K statehood, tax devolution: Congress manifesto promises to uphold federal rights
'Nyay Patra' also promises to amend National Capital Territory of Delhi Act to re-empower elected cabinet and vest more powers in hands of local bodies
Among a slew of proposed reforms to uphold the federal rights of states, the Congress in its manifesto for the Lok Sabha polls, has promised to ensure devolution of central funds to states based on their demographic performance and tax efforts, and introduce a law to limit central cess and surcharges to 5 per cent of gross tax revenues.
Restoration of statehood to J&K
The party in its manifesto, ‘Nyay Patra’, released on Friday (April 5), has also promised to restore full statehood to Jammu and Kashmir; include Ladakh in the sixth schedule of Constitution, a demand Ladakhis have been making for three years now; and provide Special Category status to Andhra Pradesh.
Terming federalism the foundational principle of ‘India is a Union of States’ definition in Constitution, the manifesto alleges that the “fabric of federalism stitched together by mutual trust between the Union and states has been systematically destroyed by the BJP/NDA government”.
‘Need to empower local bodies’
The party in the manifesto asserts that the country cannot be ruled from the Centre and stresses the importance to empower not just state governments but also local bodies like panchayats and municipalities which are much closer to the people.
It promises to “review the distribution of legislative fields in the Seventh Schedule of the Constitution and build a consensus on transferring some fields from List III (Concurrent List) to List II (State List).”
The manifesto promises to amend laws to grant more executive, financial and administrative powers to mayors or chairpersons for effective governance of urban local bodies.
“Congress will enhance the role and authority of Gram Sabhas in matters concerning village panchayats. We will enhance the authority of the Gram Sabha in the administration of the following Acts: (a.) The Panchayats (Extension to Scheduled Areas) Act, 1996. (b.) The Forest Rights Act, 2006. (c.) The Land Acquisition Act, 2013,” it adds.
Steps on ‘fiscal injustice’
In the backdrop of allegation of fiscal injustice by southern states, the Congress addresses the issue in its manifesto.
Promising to “end the duplicitous cess raj of the BJP/NDA government to deny states their rightful share of tax revenues, the party says it will “introduce a law to limit Union cess and surcharges to 5 per cent of gross tax revenues.”
Addressing the states’ allegation of “unjust” devolution of taxes, the manifesto says the party will “instruct the Finance Commission to take into account factors such as demographic performance and tax efforts in determining the shares of states in the devolution of central tax revenues.”
“We will work with state governments to evolve a formula to devolve funds, including a share of GST revenues, directly to pancha[1]yats and municipalities,” the manifesto adds.
Empowering Delhi cabinet
The party also promises to amend the National Capital Territory of Delhi Act, 1991, to invest more power in the elected government. The legislation after an amendment in 2021, vested discretionary powers in the lieutenant governor, making him more powerful than the elected government.
The party also promises to enhance financial assistance to the Autonomous District Councils in the North Eastern states.