Harish Rao demands justice for Telangana from 16th Finance Commission

Former Finance Minister and senior BRS leader T Harish Rao urged the 16th Finance Commission to protect the rights of Telangana and ensure that States like Telangana, which made significant progress, were not unfairly penalised. He raised strong objections to the Union government’s selective implementation of the 15th Finance Commission’s recommendations, dubbing it as violation of the Constitution.

“This pick-and-choose approach is unconstitutional. For Telangana, the 15th Finance Commission recommended Rs 6,097 crore under various grants, but we have not received a single rupee. Ignoring these recommendations is a violation of the Constitution,” he asserted, while participating in discussions with the 16th Finance Commission at Praja Bhavan on Monday.

Accompanied by MLAs Palla Rajeshwar Reddy and KP Vivekanand, Harish Rao respresented the BRS before the 16th Finance Commission, demanding for protection of Telangana’s rights and push for a fairer share of central resources. “We made significant strides since the formation of Telangana. We eliminated power cuts, prevented farmer suicides, and set the stage for prosperity,” he said.

The former Finance Minister explained about Telangana’s leadership in GDP growth and its status as a model for the nation. On discrepancies in the allocation of funds, he said though the union government promises a 41 per cent tax share, the States are receiving only 31



per cent which must be corrected. He also found fault with the Centre’s use of surcharges and cesses, to avoid sharing revenue with the States.

“Despite contributing 20 per cent of the Centre’s revenue through these levies, the States are not getting their fair share. We urge the Commission to increase the States’ share to 50 per cent,” he said, emphasising the need to support performing States like Telangana which has highest per capita income in the country.

On tax collection, Harish Rao argued for better incentives to top performers in tax collections including an increase of weightage from 2.5 per cent to 10 per cent. He also sought increased funding for local bodies to address the growing needs of urbanising States. He voiced concern about the debt burden imposed on the States during the pandemic and appealed the Centre to take responsibility for repaying the loans.

The senior MLA sought Rs 40,000 crore for operation and maintenance of lift irrigation projects in Telangana, considering its geographic challenges in water supply. He requested national project status for the Palamuru-Ranga Reddy Lift Irrigation Scheme. He also wanted Rs 20,000 crore for maintenance of the Mission Bhagiratha which ensured piped drinking water to every household. He urged the union government to allocate Rs 10,000 crore for construction of super specialty government hospitals that offer corporate-level healthcare to the poor.