The Andhra Pradesh government has pinned its hopes on the recommendations of the 16th Finance Commission, led by economist Arvind Panagariya, which arrived in the state on Tuesday. With pressing issues such as state division, mounting debts, limited employment opportunities, and devastation from cyclones adversely affecting the region, the state is seeking increased central funding and special grants.

The Finance Commission held discussions with Chief Minister Chandrababu Naidu, cabinet members, and various officials at the Secretariat on Wednesday. In a warm welcome, CM Naidu presented the Commission members with an exhibition addressing pivotal issues, including the development of the state capital Amaravati and the Polavaram project, alongside the connection project to Banakacharla.

During the meeting, Naidu showcased a video outlining the government's vision for the capital and elaborated on financial support expected from the central government. He presented an overview of the state's strategic goals, including the Swarnandhra Vision 2047 initiative, alongside progress on infrastructure projects and measures to attract investment.

Highlighting the financial challenges faced post-bifurcation, the Chief Minister urged the Finance Commission to consider the state’s plight and provide recommendations that would enable the central government to allocate additional resources to Andhra Pradesh. The recommendations of the 16th Finance Commission are set to take effect in January 2026, making this meeting crucial for the state's future financial stability.