2011 Census Issue:
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The Terms of Reference (ToR) of 15th Finance Commission have drawn protests from many states, especially from southern ones, over its mandate to use 2011 Census data over 1971 Census data for resource allocation.
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The ToR of FFC as decided by centre have been criticized by southern ones, as being against spirit of cooperative fiscal federalism.
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The centre has mandated to FFC that population data for determining states’ share of tax revenues should be based on the 2011 Census, rather than the earlier practice of using the 1971 Census.
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Southern states, as well as states such as Punjab and Odisha have succeeded in reducing their population growth rates in recent decades while growth rates of most northern states including Uttar Pradesh and Bihar have remained high.
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Southern states allege that if FFC uses 2011 Census data, more resources will be transferred to northern states, thus penalizing states that have succeeded in controlling population.
Steps taken:
The Fifteenth Finance Commission (FCC) headed by NK Singh has constituted Advisory Council to advise and assist Commission on issue or subject related to Terms of Reference (ToR) to quell strong opposition from some states over 2011 census.