HYDERABAD: The State government has decided to pitch for more allocations under the 13th Finance Commission on the strength of the impressive development in the economic indicators achieved during the past five years.
The government is planning to insist on giving weightage to significant increase in the income generation activities that led to acceleration of poverty eradication measures in addition to the population, size and poverty level which are normally taken as indicators for devolution of funds. Senior officials said devolution of funds from the Centre was not commensurate with the development achieved by the State government over the past few years.
The government’s careful approach of pumping in more public investment to generate employment opportunities which, in turn attract more private investments had paid off. Revenues of the State increased from Rs. 25,000 crore to Rs. 65,000 crore, with a compounded annual growth rate of 18 per cent, over the past four years without significant increase in taxes in any sector.
“We could accelerate poverty eradication with faster economic development and want extra weightage be given to our efforts,” sources close to Chief Minister Y.S. Rajasekhara Reddy said.
The Chief Minister was briefed about the forthcoming visit of the finance panel’s members led by its chairman Vijay L. Kelkar from July 19. The panel members are expected to hold discussions with all political parties and other major stakeholders on the State’s economic situation before finalising its recommendations.
Finance Minister K. Rosaiah, who is a member of empowered committee of State Finance Ministers headed by West Bengal Finance Minister Asim Dasgupta, had already demanded allocation of 50 per cent to States against the 30.5 per cent at present. “Though the size of the cake (devolution) will be determined by the Centre, we want a share which is in line with the development we have achieved,” a senior official said.