I shall confine myself to one or two areas only. Madam, we have to keep in mind articles 292 and 293 of the Constitution. The Finance Minister has rightly told that we are moving into the debt trap. I am asking one small question. Under article 292, there is a provision that we should limit our borrowing and debt.

If I remember correctly, only Prof. Madhu Dandavate, when he was the Finance Minister, announced in this august House that by the end of the year he would bring in a legislation to limit our borrowing as required under article 292. But he did not see the end of the year and that was not enacted. Never before did a Finance Minister say that and after him it has never been told or attempted by anybody.


SHRI TRILOCHAN KANUNGO : The borrowing should be limited; the debt should be limited for the Centre as well as for the States as required under article 293. My point is very simple. Today some States, particularly backward States, have staggering debt burden. As you know, as per the provisions of article 293, a State cannot borrow a single copper coin from outside or from anybody without the permission of the Centre. It has been said that as per Gadgil formula, in the Plan assistance, there will be 70 per cent loan and 30 per cent grant. As a result, the outstanding debt burden is mounting up constantly. Therefore, very recently, the C.M. of Andhra Pradesh has rightly demanded that article 293 should be amended and freedom should be given for borrowing by the States. My point is, it was there in the Government of India Act, 1935. But it is not there in our free and Republic Indian Constitution. It has been taken away. Had that been there, the States could have grown on their own. It was not given to them and therefore the debt burden has been mounting up constantly due to the faulty policy of the Centre.

Secondly, I have always been maintaining that laws made under the Constitution are so enacted that they have stood against the interest of the backward States. I may give you one example. articles 269 and 270 are not only similar; they are same. The language used in both the articles is the same. But Income Tax has been brought into the divisible pool and the Finance Commission is empowered to devolve it among the States. But, so far as other taxes under article 269 are concerned, they are not devolved. Both the languages are the same, I don't say similar.

If people look at the Central Sales Tax, they would see that Maharashtra is earning a revenue of more than Rs.1500 crore every year. It is a developed State as per Indian standards. Whereas Orissa, as per one report of 1994-95, had earned only Rs.4 crore. Had it gone into the divisible pool, things would have been different. Similarly, Consignment Tax has been incorporated in the Constitution of India in 1982, but no law has yet been enacted. As a result, backward States like Bihar, Orissa and West Bengal too are deprived of this.

It is not only that. I told you day before yesterday regarding the royalty on minerals. By no stretch of imagination royalty on minerals is to be imposed by the Centre under the Constitution. It is not at all within the power of the Centre. It is a State subject. It is there in the State List listed as Item No. 50...(Interruptions)

MR. CHAIRMAN : Now, you have to wind up. We are running out of time.

SHRI TRILOCHAN KANUNGO : Should I stop in the middle? If you want that, I will do that.

MR. CHAIRMAN: I am requesting you to wind up as soon as possible.

SHRI TRILOCHAN KANUNGO : I am doing that. But you are taking most of my time. I shall not take much time because I am a new Member. I have not yet become a problem to the Chair. The old Members are there. Only, they are the problems to the Chair. Please remember that the new Members are not your problem...(Interruptions)

Coming to the subject, royalty has been fixed by the Centre. Again, royalty has been revised arbitrarily. Royalty has not been fixed as per the provision of the Act. Royalty has been fixed as per the caprice of the Central Government. As a result, I am telling you that Orissa alone is losing about Rs.500 crore every year. How can Orissa improve its infrastructure? How will it provide money for social services like education and health? These are the problems. These are the pertinent things that I am raising before the august House to have a rethinking in the 50th Year of the Republic. This should be borne in mind. We should revise it accordingly. Unless we do that, unless the micro-economic imbalances are corrected, I tell you that all the macro-economic achievements will become meaningless. I feel it is absolutely a futile exercise. I shall tell you this boldly.

I know the ability of the hon. Finance Minister for quite a number of years. But I would again request him to look into the area to which the successive Governments have turned a blind eye.

Last but not the least, I have made a request to the Finance Minister, to the Prime Minister and to the President of India to extend the term of the Eleventh Finance Commission. Let the Eleventh Finance Commission give an Interim Report for 1999-2000 and then for five years because the Members of the Thirteenth Lok Sabha will get ample time and opportunity to interact with them. I tell you why I have told this thing. All the successive Finance Commissions have been given the responsibility to suggest means for sound finances both of the Centre and the States. But not a single Finance Commission has ever made such recommendations to that effect. I have requested the Govt. to extend the term so that the hon. Members of the Thirteenth Lok Sabha would get an opportunity to interact with them. I hope the Finance Minister and the Union Government will look into it.

With these words, I conclude.

SHRIMATI GEETA MUKHERJEE (PANSKURA): Madam, at the outset, I would like to say that we all know that the economic situation of most of the States is very bad. Some of the States are not being able to pay the salaries of their employees. Under the circumstances, the recommendation of the Tenth Finance Commission to give the States 29 per cent of the total revenue has not been carried out.

At least that should have been there. I would have liked to see it in this supplementary Budget. West Bengal wanted Rs. 721 crore for flood, etc. Unfortunately, there is no provision for that in this Budget. I do not want to go into the details again about Orissa. Naturally, Orissa will need much more money.

I was the first person to reach Bhopal after the Bhopal gas tragedy. So many years have passed and so many Governments have gone. Unfortunately even after 14 years, they have to come and beg for their compensation. I see that Rs. 177 crore have been allocated this time. I hope that this amount will really reach the victims of the gas tragedy and solve this problem once and for all.

Now, I find that an amount of Rs. 50 crore is being given as an advance to the Central Government employees for buying motorcars. I do not know the necessity to give this amount now when there is so much financial crunch.

Then, I find that Rs. 8 crore have been given to the National Reconstruction Corps. Who are the people in the National Reconstruction Corps? Is that not an outfit of the RSS? Is it a fact that this money has been given for financing the hidden agenda?

Now, last but not the least is the question of black money. I would like to know how much black money has been realised during this period. Everybody knows that if we could realise the black money, then, we shall not be in trouble because of our finances. But no serious attempt is being made for retrieving the black money. Therefore, I would like to know from the hon. Minister how much effort has been made in this regard. This being the situation, naturally, I am not in a position to support the supplementary Budget.

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