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

Andhra Pradesh Chief Minister N. Chandrababu Naidu has requested the 16th Finance Commission to increase the state's share in central tax devolution to 50% and provide special financial assistance. While the state BJP suggested retaining the existing 41% share with special weightage based on financial needs, TDP defended the request as standard practice for states.

Amaravati: 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..