Telangana Chief Minister A Revanth Reddy urged 16th Finance Commission to share 50 percent of Central Taxes with states. He made this demand in the meeting with the members of 16th Finance Commission led by chairman Arvind Panagariya. CM also requested the Commission to allow restructuring of Telangana debt which stands at a staggering Rs 6.85 lakh crore.

The 16th Finance Commission is visiting Telangana for the first time after Congress assumed power in the state, thus making it a significant moment for Revanth Reddy Government.

According to the Centre-State fiscal practices, about 41 percent of funds from Central Taxes are shared with states as of now. Many states have been demanding to increase the share for the past few years. Now giving weight to those demands, Telangana CM has come up with the request of increasing the states’ share to half of the total central taxes.

Inspite of being a state with immense revenue potential and assets, Telangana has got a huge debt burden, due to the fiscal indiscipline of past BRS Government. Now the responsibility lies on the shoulders of Revanth Reddy-led Congress Government to put the state’s finances in order.

Dnr