The 16th Finance Commission meeting has now commenced in the People’s Building at Hyderabad. This Commission is headed by Arvind Panagariya. The state government has placed a number of issues before the Finance Commission, including funds that are to be allocated due to the state.
The Chief Minister, Revanth Reddy, said Telangana is the youngest state in the country and now commonly referred to as “Future State.” He added that Telangana, in quick motion, is getting developed economically and would represent the progress of the nation.
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With a strong foundation and robust economic system in place, the state of Telangana still has to grapple with many issues on the financial front. On his request, permission was sought for the restructuring of debt burdens on time and pressed for adequate support to enable Telangana to do its bit for creating the third-largest economy of the world, which is India.
On-budget and off-budget loans together accounted for ₹6.85 lakh crore at the end of the last financial year. The government has been taking huge loans since the last ten years for various infrastructure development projects, and a big chunk of state revenue is utilized for debt servicing nowadays.
Poor management of loan and interest repayments could have made the state struggle to move ahead in its progress. The Chief Minister sought assistance and support toward overcoming the debt problem.
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He also demanded the hike in the percentage of central taxes to be shared with states from the present 41% to 50%. If that happens, he promised that Telangana will extend all cooperation to fulfill Prime Minister Narendra Modi’s dream of building a $5 trillion economy in India. He promised that they were committed to building Telangana into a trillion-dollar economy.
He also sought support in the cause of strengthening fiscal federalism, and said recommendations by the Finance Commission give a lot of hope for Telangana to tide over the challenges it is faced with.
