Telangana's Appeal to the 16th Finance Commission: A Call for Increased State Share in Central Taxes

Telangana Chief Minister A Revanth Reddy has urged the 16th Finance Commission to increase states' share in Central taxes from 41% to 50% to address its mounting debt and improve fiscal management. Deputy Chief Minister Bhatti Vikramarka echoed the demand, emphasizing the need for greater autonomy in tailoring central schemes and revising the criteria for fund allocation.

Telangana Chief Minister A Revanth Reddy called on the 16th Finance Commission to raise states' share in Central taxes from the current 41% to 50%, citing the state's debt surge to over Rs 6.85 lakh crore by the end of the last financial year.

During a meeting with Commission Chairman Arvind Panagariya, Reddy emphasized the need for debt restructuring or additional assistance, pointing out that significant revenue is being consumed by loan repayments. He pledged support for Prime Minister Narendra Modi's vision of a USD 5 trillion economy if the demand is met.

Deputy Chief Minister Bhatti Vikramarka urged the Commission to grant states more autonomy over centrally-sponsored schemes and to adjust the formula for horizontal devolution, proposing a 50% weightage to GSDP. Vikramarka argued that increasing vertical devolution would provide states the fiscal flexibility required to enhance welfare programs and infrastructure projects.

(With inputs from agencies.)