Hyderabad: Chairman of the 16th Finance Commission, Arvind Panagariya, has stated that the Telangana government has requested an opportunity for additional loans or restructuring of existing debts.
The meeting of the 16th Finance Commission was held at Pragathi Bhavan on Tuesday, where the state government presented a PowerPoint presentation on Telangana’s development.
Panagariya noted that the Telangana government thoroughly explained the state’s financial situation to the commission. He praised the state’s development plans, especially highlighting the government’s focus on urban development, which is often neglected elsewhere.
The Telangana government also requested a share of the cess and surcharge collected. Additionally, the state expressed its desire for incentives for states delivering good governance and better results, a request also echoed by neighbouring Karnataka. Panagariya mentioned that while the 15th Finance Commission recommended a 1% share of the divisible pool for states, Telangana is seeking an increase to 30%.The meeting involved detailed discussions on loans and included inputs from government officials and public representatives. Telangana also requested an increase in its share of central funds. Panagariya clarified that while the Centre considers the Commission’s recommendations, the Commission cannot question the Centre’s policy on fund distribution. However, he assured that the commission would recommend policies aimed at benefiting the public. (INN)