TG BJP submits 13-point dossier to 16th Finance Commission

Hyderabad Telangana State BJP led by its Malkajgiri MP and former State Finance Minister Eatala Rajender, BJP state general secretary Dr Kasam Venkateswarlu and secretary Dr S Prakash Reddy have submitted a 13-point dossier to the 16th Finance Commission on Monday.

The BJP team asked the commission to come up with a norm that seriously refrains the states from diverting funds released under a certain head by introducing strict and penal provisions to prevent the diversion of funds. Pointing out that the earlier BRS government and the present Congress government have mastered the art of diverting funds, therefore the need.

They stressed that funds released to the local bodies be spent only by the local bodies, and the District Collector should be made responsible for any “diversion of the fund or delay in allocation. Local bodies alone would have control over the funds.

The BJP suggested that the Finance Commission include incentives for states that put an emphasis on reforming healthcare, education, and the environment, as well as sustainable development. This is in line with international development goals like the Sustainable Development Goals (SDGs) and national interests. Rewarding states prioritise long-term sustainability and governance driven by reform will help us encourage responsible growth across the country.

It emphasised the significance of states striving for self-sufficiency and increased economic competitiveness while acknowledging regional disparities.

The performance of the states in important areas like infrastructure development, health, and education should have a direct bearing on the fiscal transfers from the Center. With this strategy, states are guaranteed to be motivated to attain observable results that benefit their people.

The BJP proposes changing welfare spending by emphasising effectiveness, quantifiable outcomes, and precise beneficiary targeting. “We can ensure that welfare schemes reach the intended population while minimizing leakage by linking fund disbursements to digital and technological governance interventions, such as the Aadhaar-based Direct Benefit Transfer (DBT) system.”

Also, a portion of central transfers should be allocated based on states’ performance in key governance areas like fiscal prudence, infrastructure development, and poverty reduction.

Fiscal prudence through Debt to State GDP ratio that includes, Off-budget borrowings (OBBs) should be used for rewarding fiscal prudence as a part of performance grants.

Incentivisation of the state maintaining a balance between infrastructure and welfare through performance grants for spending more on Capital infrastructure formation, it added.

Incentivisation of just-in-time payments and smart contracts will give states fiscal space to use their money better by freeing up idle money in bank accounts in the form of “float”. Further, there had been an emphasis on creating additional infrastructure, maintaining the existing infrastructure is not given the required importance for various reasons.

This results in neglect of many capital assets created by huge public investments. The non-maintenance of Capital Assets, particularly the Irrigation Projects and canals, has wider ramifications. Hence the FC may factor in this aspect also while giving its recommendations.

The BJP delegation also asked the Finance Commission to consider the aspect of weightage to Hyderabad taking note of the pattern of inter-regional migration as a consequence of increased access to employment and growth opportunities happening across the country.