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Andhra Pradesh Seeks Increased Tax Share and Special Aid in Finance Commission Plea

Chief Minister Chandrababu Naidu presented a detailed proposal to the 16th Finance Commission, urging a 50% vertical devolution and targeted grants to address post-bifurcation fiscal challenges.

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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

  • Chief Minister N. Chandrababu Naidu requested the 16th Finance Commission to raise states' share of central taxes from 41% to 50% to strengthen Andhra Pradesh's financial position.
  • Naidu emphasized the state's unique post-bifurcation challenges, including revenue losses from Hyderabad's separation, and appealed for special financial assistance from the Centre.
  • The state proposed reforms to the horizontal devolution formula, suggesting reductions in weightage for income distance, population, and area criteria to better reflect Andhra Pradesh's economic contributions.
  • The Swarnandhra Vision 2047, aiming for a $2.4 trillion economy and 15% annual GSDP growth, was highlighted alongside requests for grants for key infrastructure projects like the Polavaram–Banakacharla interlink and Amaravati's development.
  • The Finance Commission praised Andhra Pradesh's WhatsApp governance initiative, which aims to deliver up to 1,000 citizen services through messaging platforms.