CM seeks 16th Finance Commission to restructure Telangana’s debt and increase central funds devolution to 50%

Telangana Chief Minister A. Revanth Reddy and Deputy Chief Minister Mallu Bhatti Vikramarka with the 16th Finance Commission members in Hyderabad on Tuesday (September 10, 2024).
| Photo Credit: By Arrangement

Telangana Chief Minister A. Revanth Reddy has sought the 16th Finance Commission to give options to either restructure the debt of Telangana or offer additional assistance. He has demanded to increase the devolution of central funds to States from 41 per cent to 50 per cent. Mr. Reddy said that if the latter demand is met, he will take the responsibility of Prime Minister Narendra Modi’s vision to make India a 5 trillion dollar economy.

The 16th Finance Commission reached Hyderabad on Monday (September 9, 2024). It received representations from representatives of local bodies and municipal corporations. On Tuesday (September 10, 2024), the Chief Minister and Deputy Chief Minister Mallu Bhatti Vikramarka met with the commission.

Mr. Reddy said that the State has a heavy burden of debt, which now stands at over ₹6.85 lakh crore, as of end of last financial year. This includes both budgeted and off-budget borrowings. The Chief Minister said that a significant part of the State’s revenues go into repaying debt. “If we don’t manage our loans and interest payment, it will  slow down our progress. We seek your support to help us address this problem,” the Chief Minister said. Stating that he will make Telangana a 1 trillion economy, he sought aid for the State. 

Published – September 10, 2024 03:03 pm IST

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