Andhra Pradesh CM Naidu pushes for higher tax share; BJP seeks special weightage instead

Andhra Pradesh Chief Minister N. Chandrababu Naidu has urged the 16th Finance Commission to increase the state’s share in central tax devolution from the current 41% to 50%, while also seeking special financial assistance for rebuilding the state and completing key projects.

Naidu made the request during a meeting with Finance Commission Chairman Arvind Panagariya, who was on a visit to the state last week. The Chief Minister presented a detailed case for increased funds and outlined various development priorities.

Panagariya also met with representatives of political parties during the visit. The state BJP, however, took a different line.

In a memorandum submitted to the Commission, BJP MLA Adinarayana Reddy and party spokesperson Lanka Dinakar supported retaining the existing 41% share, while recommending a mechanism to factor in the financial sensitivity of individual states.

“We are not asking for an increase in devolution to 50%. Instead, we’ve proposed special weightage based on the financial needs of states like Andhra Pradesh, along with sector-specific funds for areas such as health and education. Combined, this goes beyond the 50% mark,” Dinakar told ET.

TDP spokesperson Pattabhi Ram Kommareddy maintained that states seeking more funds from the Centre is standard practice. “This is not a conflict within the NDA. Every state demands what it needs. It’s part of the process,” he said.

Source #ET

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