TG pours out woes before Finance Commission

Hyderabad: The State Government poured out the “financial woes” before the 16th Finance Commission and sought liberal help. Top officials of the government apprised the Commission of the economic challenges faced by the state during a meeting with the Commission here on Monday.

State Special Chief Secretary Finance K Ramakrishna Rao, IT and Industries Secretary Jayesh Ranjan and the officials of other departments attended the meeting conducted by Finance Commission Chairman Arvind Panagariya. The committee members Ajay Narayan Jha, Annie George Mathew, Dr Manoj Panda and Soumya Kanti Ghosh also participated in the meeting.

State officials explained to the Commission the mounting debt burden due to the financial mismanagement of the previous government and sought special funds for local bodies to overcome the financial challenges. They also raised the issue of demand for the increase of central devolution in the taxes collected from the states in the meeting.

They told the Commission that more central assistance was required to develop the state, particularly in the fields of education, health and industrial sectors. A senior official said that the Commission had reviewed the state’s development with statistical data.

The officials also explained to the Commission how financial losses were incurred by the state due to recommendations made by the previous 15th Finance Commission. Sources said that Chief Minister A Revanth Reddy and Deputy CM Mallu Bhatti Vikramarka would present a memorandum to the Commission at an informal meeting before the Central delegation leaves the state on Tuesday.

Principal Secretary of Municipal Administration Dana Kishore briefed the committee members about the status of urban local bodies in the state. He highlighted the major reforms initiated by the Municipal Administration department and briefed them about various developmental activities taken up by the department under the 15th Finance Commission.

Secretary to Panchayat Raj and Rural Development Lokesh Kumar informed the Commission that the state has achieved ODF plus (Open Defecation Free). The Commission also interacted with several trade bodies like FICCI, CII, etc. Members of various trade bodies sought for change in devolution criteria which should incentivise a performing state. They further sought the intervention of the Finance Commission through a special fund for the revival of industries that had turned sick during the Covid pandemic.