The Centre has ruled out ‘retrospective' treatment with respect to the concept of effective revenue deficit (ERD).
A request for such treatment was placed with the Centre during the Chief Minister, Mr Oommen Chandy's visit to New Delhi on Monday, an official spokesman said.
TERM OVER
The issue at stake was amending the FRBM Act to include the concept of ERD and modifying targets as fixed by the 13th Finance Commission.
The Union Finance Minister, Mr Pranab Mukherjee, agreed with Mr Chandy's proposal to bring in this concept of ERD instead of simple revenue deficit.
But he pointed out that such decision could not be taken retrospectively because the term of the 13th Finance Commission was already over.
EXTERNAL AID
However, he advised that the request be posed before the 14th Finance Commission. The Centre would be inclined to support it, Mr Mukherjee said.
He also supported the State's demand for greater loan assistance through external aid, the spokesman said.
The State Government has been directed to submit a priority list of projects seeking such funds.
The special financial package sought by the State in the context of its ‘debt-stressed' status (along with Punjab and West Bengal) was also discussed.
The Union Minister regretted that a decision could not be taken due to elections in Punjab.
He has promised to look into this request and assured the Chief Minister of an appropriate decision at the earliest.
RIDF RATES
On roll-back of the raise in RIDF loan rates from 8 per cent to 6.5 per cent, Mr Mukherjee said that effective rate has already been reduced to 7.5 per cent.
The Chief Minister also met with the Union Home Minister, Mr P. Chidambaram. The latter was appraised about the action being taken by the State against the perpetrators of crime against fishermen off the Kerala coast, the spokesman added.
The Union Minister assured all necessary help in bringing the culprits to justice and to get adequate compensation for families of the victims.
The Chief Minister reminded him of a pending request to add events of fire, lightning and coastal erosion to the list of calamities eligible for relief under the Calamity Relief Fund.
The State Government has been directed to send in a proposal, supported by facts and documents, the spokesman said.