Telangana Government Seeks Increased Share in Central Taxes

The Telangana Government has requested the 16th Finance Commission to raise the states' share in Central taxes from 41% to 50%. The Deputy Chief Minister, Bhatti Vikramarka, emphasized the need for fiscal autonomy, revising horizontal devolution criteria, and support for debt restructuring.

The Telangana Government has urged the 16th Finance Commission to increase the states' portion of Central taxes from the existing 41% to 50%, citing the growing impact of cesses and surcharges that are not shared with states.

Deputy Chief Minister Bhatti Vikramarka, in a meeting with Finance Commission Chairman Arvind Panagariya, stressed the importance of fiscal autonomy and tailoring centrally-sponsored schemes to meet state-specific development needs. He argued that increasing the vertical devolution would give states more fiscal space for welfare programs, infrastructure, and local development.

Vikramarka also recommended modifying the horizontal devolution formula to include a 50% weightage on GSDP, to incentivize reforms and foster balanced national growth. He called for the recognition of expenditures on schemes like Rythu Bharosa and farm loan waivers as essential investments rather than 'freebies'.

He highlighted the diversion of resources towards debt servicing and sought the Finance Commission's help in restructuring debt or providing additional assistance. The Commission held meetings with various stakeholders as part of its visit to Telangana.

(With inputs from agencies.)