New Delhi
The Union government is expected to take up The Constitution (One Hundred and Twenty-Fifth Amendment) Bill, 2019, that seeks to include autonomous councils in the ambit of the Finance Commission, which divides taxes between the Centre and states, Assam chief minister Himanta Biswa Sarma told HT on Tuesday.
A standing committee of Parliament had already looked into the Bill, the BJP leader said. Following this a federal panel under the home ministry was also formed to look into the matter.
The move is likely to see devolution of taxes to a third tier of government — autonomous councils for tribals, which operate under the sixth schedule of the Constitution.
“This proposal is there. In our context, we fully support the demand of the autonomous Councils for devolution of taxes. Discussion on The Constitution (One Hundred and Twenty-Fifth Amendment) Bill by the standing committee is already over. The government of India is in the process of bringing the amendment. We are hopeful we’ll see something positive in the coming Budget session of Parliament,” the chief minister said.
Sarma is slated to campaign for his party in the ensuing Delhi polls on Wednesday.
{{/usCountry}}Sarma is slated to campaign for his party in the ensuing Delhi polls on Wednesday.
{{/usCountry}}The bill was introduced in Rajya Sabha by the Union government in 2019. It amends provisions related to the Finance Commission and the Sixth Schedule of the Constitution.
The Bodoland Territorial Council, an autonomous authority in Assam’s Bodo tribal areas, has demanded inclusion of these self-governing council in tribal areas in Article 280 of the Constitution, which governs the Finance Commissions.
The Bodoland Territorial council is an autonomous administrative authority in Assam’s Bodo tribal areas comprising five districts.
The council this month saw the completion of five years of the 2020 Bodo peace accord signed between the Centre, the Bodos and the Assam government to devolve more powers, financial and administrative, to tribal authorities under the federal structure of the Constitution.
Before the accord, the Bodo areas had seen a long period of insurgency and instability. Peace has returned to the region after the 2020 agreement.
The Constitution, through Article 280 to 281, provides for finance commissions, set up every five years to arrive at a mechanism for division of taxes and revenues vertically i.e. between the Centre and states, and horizontally, i.e. among all states, based on their levels of development, prosperity and regional needs.
All previous Finance Commissions have incrementally increased states’ share in the pool of taxes. The 14th Finance Commission recommended a quantum leap, increasing states’ share by 10 percentage points to 42%. One of the preceding 15th Finance Commission’s mandate was to review the 14th Finance Commission’s recommendations. In the interim report for 2020-21, states’ share was cut to 41% because of the creation of new Union Territories of Jammu and Kashmir and Ladakh.