Bhatti urges Finance Commission to re-evaluate Centrally sponsored schemes

Hyderabad: Deputy Chief Minister Bhatti Vikramarka has urged the 16th Finance Commission to re-evaluate Centrally Sponsored Schemes (CSS) and extend more financial allocation based on the requirements of Telangana State.

During a meeting with Members of 16th Finance Commission at Praja Bhavan here on Tuesday, the deputy Chief minister stated that the stringent conditions attached to accessing CSS funds often limit States’ ability to design programmes that align with local needs, urging the Finance Commission to grant States more autonomy in shaping these schemes.

Stating that the Telangana State is grappling with a debt burden exceeding ₹6.85 lakh crore by the end of the last financial year, Bhatti Vikramarka called for additional support from the Finance Commission to restructure the State’s debt and free up resources for further growth.

He also urged the Finance Commission to raise the States’ share of central taxes from 41 to 50 percent, citing the growing number of cesses and surcharges that are not shared with the States.

Later, speaking to the media, Bhatti Vikramarka highlighted Telangana’s unique position, explaining that despite having a high per capita income, the State is facing significant income and wealth disparities due to historical imbalances.

He stressed that the slow progress in addressing these disparities post-State formation has led Telangana to spend heavily on infrastructure and welfare programs.

“If the Finance Commission continues to rely on per capita income as the primary indicator for determining resource distribution, it will severely hamper the State’s ability to reduce inequality,” he warned.

The deputy Chief minister called for a reconsideration of this formula, proposing that the income gap weightage be significantly reduced.

To further balance fiscal allocations, Bhatti suggested that at least 50% of the weight in horizontal devolution should be given to GSDP (Gross State Domestic Product) contribution. The deputy Chief minister argued that focusing on states’ contribution to the national GDP would incentivise productivity, attract investments, and create jobs, ultimately benefiting the national economy. This approach would promote balanced growth across the country by addressing regional disparities, Bhatti added.