Hyderabad, Sept.9 (NSS): Former minister Harish Rao joined by MLAs Palla Rajeshwar Reddy and Vivekanand, participated in the 16th Finance Commission meeting at Praja Bhavan, representing the BRS Party. The team outlined key proposals to protect Telangana’s rights and push for a fairer share of Central resources.
“We have made significant strides since the formation of Telangana State. We’ve eliminated power cuts, prevented farmer suicides, and set the stage for prosperity,” he added. Harish Rao emphasized Telangana’s leadership in GDP growth and its status as a model for the nation. However, he expressed concern over discrepancies in the allocation of funds: “Though the Central government promises a 41% tax share, we’re only receiving 31%. This mismatch needs to be corrected.”
He also criticized the Central government’s use of surcharges and cesses, which are not shared with States. “Despite contributing 20% of the Centre’s revenue through these levies, the States aren’t getting their fair share. We urged the Commission to increase the States’ share to 50%.” Harish Rao highlighted the dramatic increase in the Center’s non-tax revenue, which grew from ₹171 crore in 1961 to ₹5.46 lakh crore in 2024-25. “States should also receive a portion of this revenue,” he stated.
He then pointed out that successful States like Telangana are being unfairly penalized. “We lead the country in per capita income, yet we’re being punished with reduced shares. That’s simply unjust,” Harish Rao said, reminding the Commission of the consistent reduction in Telangana’s share over successive Finance Commissions. We appealed to the 16th Finance Commission to stop this pattern of injustice and support States that are performing well,” he added. Harish Rao also proposed adjustments to the current scoring system for determining State allocations. “States with higher per capita income get zero points, while those with lower incomes get 45. We suggested lowering this to 30.” On tax collection, Harish Rao argued for increased incentives. “We’re among the top performers in tax collection but only receive a 2.5% weightage. Increasing this to 10% would promote healthy competition among States.”
He also called for increased funding for local bodies to address the growing needs of urbanizing states. Harish Rao voiced concerns about the debt burden imposed on states during the pandemic, urging the Centre to take responsibility for repaying the loans. Regarding Telangana’s unique geographic challenges, Harish Rao stressed the importance of lift irrigation projects. “These projects have transformed our agriculture and made Telangana the largest producer of paddy in the country,” he said, calling for ₹40,000 crore in funding for maintenance. He also requested national project status for the Palamuru lift irrigation scheme, noting that similar projects in Andhra Pradesh, Karnataka, and Maharashtra have already received this recognition.
Despite the success of Mission Bhagiratha, which has provided piped drinking water to every household, the Center has failed to release funds. “NITI Aayog recommended ₹19,205 crore for the project, yet we haven’t received a single rupee,” Harish Rao said, also pressing for ₹20,000 crore for maintenance. He urged the Central government to allocate ₹10,000 crore to build public hospitals that offer corporate-level healthcare to the poor.
Harish Rao concluded with a strong critique of the Central government’s selective implementation of Finance Commission recommendations. “This pick-and-choose approach is unconstitutional. For Telangana, the 15th Finance Commission recommended ₹6,097 crore across several grants, but we haven’t seen a single rupee. Ignoring these recommendations is a violation of the Constitution.” He urged the Finance Commission to protect the rights of Telangana and ensure that States like Telangana, which have made significant progress, are not unfairly penalized.
Harish Rao also condemned the Congress Party’s refusal to grant the Opposition the chairmanship of the Public Accounts Committee (PAC), calling it a direct attack on democracy. “Rahul Gandhi’s speeches about constitutional values are empty rhetoric,” Harish Rao said. “In the Centre, Congress leader K.C. Venugopal holds the PAC chairmanship, but here, they’ve given the position to Arikapudi Gandhi, who defected from BRS to Congress. This is a mockery of democratic principles.” Harish Rao closed with a sharp rebuke: “Rahul Gandhi has no moral ground to speak about the Constitution unless he corrects this injustice.”
