Jayalalithaa said if the Committee's recommendations wereapplied, her state would receive on a per capita basis, less than half of what would be transferred by the Centre on an average per capita basis and one-fifth of the highest per capita allocation for a Non-Special Category state.
This was a "regressive, unfair and completely perverse outcome," she said.
"The bulk of transfer of funds from the Centre to states needs to take place based on recommendations of the Finance Commission which is constituted every five years," she said.
The Chief Minister said the report contains within it the danger of a substantial pre-emption of grant resources in favour of a few populous states if applied more generally to Central transfers. Any such far reaching modification would have to be approved by the Planning Commission and by the National Development Council, she said.
