TS to oppose Centre’s tax devolution norms

The state government decided to oppose Centre’s terms of reference set for 15th Finance Commission for devolution of taxes based on 2011 census instead of the earlier 1972.

Finance minister Etela Rajender on Saturday said the TS, which had tax devolution share of 2.43 per cent at present, would lose in case the 2011 census was considered. The state government would fight to secure justifiable share of funds from the Centre and submit a report accordingly to the Commission when it visited the state next month.

He told the Legislative Council that the government was preparing a report explaining the state’s needs to the commission and the funds required to fulfil them.

“We are focussing on irrigation projects, Mission Bhagiratha and Mission Kakatiya. Besides, we are also implementing a slew of welfare schemes for the uplift of sections which are lagging behind. This requires huge funds and the Finance Commission and the Centre had to take these factors into consideration before determining the state’s share in tax devolution,” Mr Rajender added.

He also took a dig at Centre for not honouring the recommendations made by Niti Aayog which was constituted by Prime Minister Narendra Modi. The Niti Aayog recommended `20,205 crore for Mission Bhagiratha and `5,000 crore for Mission Kakatiya two years ago. “But the Centre had not released even a single rupee so far,” he said.

Etela Rajender took a dig at Centre for not honouring the recommendations made by Niti Aayog which was constituted by Prime Minister Narendra Modi. The Niti Aayog recommended `20,205 crore for Mission Bhagiratha and `5,000 crore for Mission Kakatiya two years ago.