Former Prime Minister Manmohan Singh on Saturday said the Centre should have consulted chief ministers before changing the terms of reference of the 15th Finance Commission.

Unilateralism is not good for federal policy and cooperative federalism, he said, addressing the “National Seminar on Additional Terms of Reference of the 15th Finance Commission: Implication for the States”.

In July, the Centre had changed the commission’s terms of reference and mandated the panel to suggest ways for allocation of non-lapsable funds for defence and internal security.

Any change in the panel’s terms of reference at the fag-end of its term should have been done in consultation with the states, Singh said.

The commission, headed by N.K. Singh, was notified on November 27, 2017, to suggest the formula for devolution of funds to states by the Centre for five years commencing April 1, 2020.

“The best course would have been for the central government that if it wants to tailor the terms of reference, it should be backed by chief ministers’ conference, which is now under the auspices of Niti Aayog, otherwise there would be strong feeling that the (central) government is trying to rob the states of due resource allotment.

“I think that it is not good for the federal polity of our country and the cooperative federalism that we all swear by these days,” Singh said.

The commission was to submit its report by October 30, 2019. The deadline was extended to November 30, 2019.

“I respectfully request to the authorities to still take this view that they will go by the advice of the chief ministers if there is new controversy with regard to additional terms of reference of the commission,” Singh said.

“There are certain basic issues like allocations for health, education and other important subjects, environment protection, where all states have a legitimate interest. What should be done by the government is to evolve a broad national consensus in dealing with all these issues….”

Singh also said it was “rather odd” to bring additional terms of reference when most states have “already gone to the commission with their requirement”. “Now you impose another terms of reference on the commission, which would complicate its work,” he added.