Puducherry’s inclusion in finance panel ruled out

Vaithilingam raises question in Parliament

The Centre has no plan to include the Union Territory of Puducherry within the purview of the 15th Finance Commission, according to Finance Minister Nirmala Sitharaman’s response to a question raised by Congress MP V.Vaithilingam on the opening day of the monsoon session of Parliament on Monday. Mr. Vaithilingam, had, in a starred question, sought to know whether the Union Territory of Puducherry was yet to be included under the terms of reference of the 15th Finance Commission, despite repeated requests from the Government of Puducherry and whether the Union government would come forward to do. Ms. Sitharaman, while replying in the negative to both questions, stated that the terms of reference of the Finance Commission were framed under Art 280 (3) of the Constitution. It envisages that the Commission make recommendations on sharing of taxes, grants-in aid of revenue in respect of States. Puducherry being a Union Territory, therefore, does not fall under the ambit of Art 280(3).