Telangana Officials To Meet Finance Commission To Discuss State’s Needs

Telangana Principal Secretary, Finance, V Nagi Reddy and the advisor to the Government GR Reddy today are visiting Delhi to meet the 14th Finance Commission. They would be discussing the criteria and modalities the commission would follow in allocating funds to AP and Telangana in view of bifurcation. the erstwhile AP got Rs 27,000 Cr. On a proportional basis, Telangana may get Rs 13,000 Cr. The TRS has in the past requested the commission to take population as a criterion. The delegation may discuss the government’s priorities in the various welfare and development schemes. Depending on the feedback, the Government would set out on budget preparation, officials say.

The 14th Finance Commission was mentioned in the AP Reorganisation Act, 2014, too. “On the appointed day, the President shall make a reference to the 14th Finance Commission to take into account the resources available to the successor States and make separate awards for each of the successor States,” as per the 46(1) of the AP Reorganisation Act.

The Commission will visit both the States most probably in September or October. The Telangana government will present its first budget in September. Depending on the criterion and priorities the finance commission sets, the TRS government may shift it’s budget focus among the many welfare schemes it promised in its manifesto. 

The Thirteenth Finance Commission, whose recommendations would expire on March 31, 2015, had fixed 32 per cent of the divisible pool of taxes collected by the Centre to combined AP. The Telangana government was seeking a higher share in the Central tax collection keeping in view the increased needs of the new state.

The 14 Finance Commission is headed by former RBI Governor Y.V. Reddy and is mandated to finalise its report (recommendations) by October 31 this year.