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:: Press Releases ::
Friday, September 19, 2014

1.Dr. Y.V. Reddy, Chairman, Prof. Abhijit Sen, Ms. Sushama Nath, Dr. M. Govinda Rao and Dr. Sudipto Mundle, Members of the Fourteenth Finance Commission and Sh. A.N. Jha, Secretary visited the State of Telangana to hold consultations with the State Government and key stake holders on September, 19, 2014.

2. The Commission met with the Hon’ble Chief Minister, his Cabinet Colleagues and senior officers of the State Government, for discussions.

3. The Chief Minister Telangana welcomed the Chairman and Members to Telangana and highlighted the initiatives taken by the Government for the benefit of the weaker sections, farmers and for the development of the State. He reiterated his resolve of ensuring that the benefits of various programs initiated by government reach the intended beneficiaries.

4. He stated that 40% of the divisible pool of the central taxes should be devolved to the States. For horizontal distribution amongst States, he suggested that 2011 population may be assigned a weight of 25%, area – 30%, fiscal discipline – 27.5% and fiscal distance – 17.5%. He requested the Commission to recommend writing off of outstanding Central loans to the State. On Disaster Management, he requested to take into account State’s vulnerability to drought rather than the past expenditure for arriving at the size of the State Disaster Response Fund. He requested grants equal to 4% of central taxes be given to the local bodies.

5. The State Government made a detailed presentation on the finances of the State Government, its projection for the award period and gave their views on some of the Terms of Reference of the Commission. Presentations were also made on initiatives regarding decentralized planning, water grid, Telangana Ku Harita Haram, improvement of tanks, welfare of weaker sections and on Hyderabad Capital Region Safety and Security. The requirement of grants for the same were also presented. The Commission also interacted with representatives of political parties, Panchayati Raj Institutions, Urban local bodies and Trade and Industry Associations.

6. The Commission places on record its appreciation to the Chief Minister and State Government for the cooperation and support extended to the Commission and assures that the issues raised will receive due attention in the deliberation of the Commission. The Commission also looks forward to continuing interaction with the State Government.

7. The Commission will finalize its recommendations by October 2014 after completing its discussions with all the State Governments, the Government of India and relevant stake holders.

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