Prime Minister N. Chandababu Naidu, with the president of the 16th Finance Commission, Aravind Panagariya, the visit of the Charter to the Secretariat in Velagapudi on Wednesday. | Photo credit: special arrangement
The Prime Minister of Andhra Pradesh, N. Chandababu Naidu, has emphasized the need to increase the participation of vertical return to the states.
A delegation of the 16Th The Finance Commission, headed by its president Aravind Panagariya, visited the secretariat of Andhra Pradesh on Friday.
In a meeting with the delegation, Mr. Naidu said that states must play a key role in achieving the objective of a developed India. To support this, the Finance Commission should increase the current participation of vertical return from 41% to 50%.
Meanwhile, the participation of the southern states in the horizontal return is also decreasing, Naidu said.
Duration The tenth finance commission, the participation of the southern states in the horizontal return was 24.30% and was 15.80% by the 15th Finance Commission.
“In the case of Andhra Pradesh, its participation in the horizontal return, lower than its participation in GDP and the national population, which is not economically advantageous for the state,” Naidu said.
Subsidies to Rural Local Bodies
The proportion of Andhra Pradesh in the horizontal return is below its participation in GDP and the national population, causing fiscal disadvantage. While assigning subsidies to rural local bodies in the states, it is proposed that 70% of weight be granted to the population, 20% to agriculture and 10% to the geographical area, suggested the prime minister.
Mr. Naidu said that while they needed ₹ 69,897 million rupees for Gram Panchayats, Mandal Pariesds and Zilla Parishads, only ₹ 7,381 million rupees was currently Aviacble.
An additional ₹ 62,516 million rupees is required. Urban local bodies need ₹ 19,871 million rupees in subsidies for the supply of drinking water, sanitation, road construction, urban transport, street lighting and wastewater systems. In addition, for the period between 2026 and 2031, ₹ 16,181 million rupees to deal with natural disasters, “he added.
Published – April 16, 2025 08:17 pm ist