Hyderabad: Political parties have almost unanimously asked the 16th Finance Commission for larger grants to Telangana when it decides on the devolution of funds between the Centre, the states and local bodies.
The commission headed by Dr Arvind Panagariya arrived in Hyderabad on Monday and commenced consultations with representatives of political parties, local bodies, business and trade organisations as well as members of the Telangana Finance Commission and trade unions.
Chief Minister A. Revanth Reddy and Deputy Chief Minister Mallu Bhatti Vikramarka will meet the Commission at the Praja Bhavan on Tuesday. They are expected to seek more allocations for Telangana.
Congress MLA T. Rammohan Reddy, in a representation, alleged discrimination against Telangana in the devolution of funds. He alleged that the Centre was sanctioning more funds to BJP-ruled states at the cost of Opposition-ruled states.
A BRS delegation, led by former minister T. Harish Rao, pushed for protecting the rights of Telangana and for a fairer share of Central resources.
He told the media that he had pointed out that Telangana had made significant strides but was being ignored.
“We lead the country in per capita income, yet we are being punished with reduced shares. That’s simply unjust,” Harish Rao told mediapersons after the meeting.
“We appealed to the 16th Finance Commission to stop this pattern of injustice and support states that are performing well,” he added.
He said though the Centre promised a 41 per cent tax share, the state was only receiving 31 per cent. The Centre’s collection of surcharges and cesses should also be shared with the states. Harish Rao also said the BRS proposed adjustments to the current scoring system for determining state allocations.
BJP Malkajgiri MP Etala Rajendar urged the Finance Commission to dedicate one per cent of total allocation to the state for natural calamities and include heatwave as a notified disaster, so that mitigation for heat waves can be done through the State Disaster Response Fund and State Disaster Mitigation Fund.
The BJP also sought modalities to ensure that these special funds are not diverted for other purposes, but a certain amount can be used to build flood banks and other structures to prevent flooding, storm shelters, and other mechanisms to mitigate natural calamities and disasters.
Principal secretary, municipal administration, M. Dana Kishore highlighted the major reforms initiated by the MA&UD department and developmental activities implemented under the 15th Finance Commission.
Panchayat raj and rural development secretary Lokesh Kumar gave a brief overview and said that all gram panchayats had achieved ODF plus status.
Members of trade bodies sought a change in the criteria for devolution of funds to incentivise a performing state like Telangana. They also sought the intervention of the Finance Commission to create a special fund for the revival of industries which had turned sick during the Covid pandemic-related lockdowns.
During the meetings, Dr Arvind Panagariya and commission members Ajay Narayan Jha, Annie George Mathew, Dr Manoj Panda, Soumya Kanti Ghosh and secretary Ritvik Pandey heard the views of all stakeholders. Special chief secretary (finance) K Ramakrishna Rao, special secretary (finance) Krishna Bhaskar and other senior officials from the finance department attended the meeting.
