Hyderabad:
The Chairman of the 16th Finance Commission, Arvind Panagariya, expressed his admiration for the presentation made by the Telangana government. The state provided detailed information about its finances and future development plans. He praised Telangana for its achievements, particularly in urban development.
After a meeting with Chief Minister A Revanth Reddy and other ministers on Tuesday, Panagariya spoke to the press. He mentioned that the discussions were open and honest. “The state was very clear about its financial situation, including its budget and off-budget liabilities, and how it plans to manage finances in the future,” he said.
Telangana has made significant progress in urban development, an area that has been neglected in many parts of the country, Panagariya added.
The Finance Commission Chairman also noted that they are willing to listen to all states and consider their concerns. He mentioned that some states, including Telangana, have raised issues about receiving fewer central funds despite performing well economically. Telangana has also emphasized its contribution to the national economy and wants its Gross State Domestic Product (GSDP) to be considered when dividing funds among all 28 states.
Panagariya remarked that similar concerns were raised by the Karnataka government. However, he clarified that the Commission is still in the early stages of its work and has 22 more states to visit. As a result, it is too soon to say what the final decisions will be.
When asked whether the Commission might recommend increasing the percentage of funds given to states, Panagariya declined to comment, saying it was too early to make such statements.
