People were talking about poverty, unemployment, illiteracy, low health etc. Which are all fundamental issues and that cannot be solved now. One important approach that the Government has to adopt is that all these schemes relating to these fundamental issues must be entrusted to the States and the local bodies. Only they are the best instruments for achieving successes in these areas. If we have to do that, we have to improve the Centre-State financial relations. This is one area where the Government should keep its view to perform when it comes back to power in the next year. The Government will have to do two or three things in the matter of Centre-State relations. Today, through the Finance Commission's recommendations, 30 per cent of the total assigned revenue goes to the States. This is not adequate. Even for a State like Tamil Nadu which implements a lot of welfare schemes for the people is getting only 5.038 per cent of the total kitty, which is just not sufficient to make all the developmental and non-developmental expenditure. Therefore, instead of keeping all the resources here, devolve the resources. I would feel that at least the 13th Finance Commission which is working on the devolution of resources must be advised by the Government that 40 per cent of the combined total revenue of the Central Government must be given to the States. Secondly, the service tax. I think, the Parliament has brought the 88the amendment to transfer the resources generated through the service tax. The Governemnt of India is imposing taxes on 101 services and they all come directly from the States. Our understanding is, through the 88the amendment these revenues must go back to the States but it is not happening. Therefore, I would appeal to the Government of India that the entire revenue of service taxes must be devolved to the respective States.
