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Andhra Pradesh Seeks Increased Tax Share and Special Aid from Finance Commission

Chief Minister Naidu has requested the 16th Finance Commission to raise states' tax share to 50% and provide financial support for post-bifurcation recovery and development projects.

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The chief minister requested that the 16th finance commission increase the vertical devolution share. (ANI Photo) (Tharun Vinny)
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Overview

  • Andhra Pradesh Chief Minister N. Chandrababu Naidu has formally appealed to the 16th Finance Commission to increase vertical tax devolution from 41% to 50%.
  • Naidu emphasized the state's financial struggles post-bifurcation, citing unresolved asset divisions and the loss of Hyderabad's revenue base.
  • The state seeks special grants to fund its Swarnandhra Vision 2047, aiming for a $2.4 trillion economy with 15% annual GSDP growth by 2028-29.
  • Key proposals for central funding include the Polavaram–Banakacharla river linking project, tourism hubs, logistics infrastructure, and Amaravati's development.
  • The Finance Commission, led by Arvind Panagariya, is reviewing Andhra Pradesh's requests during its ongoing state visit and will consult other states before finalizing recommendations.