At the 16th Finance Commission meeting in Hyderabad on Tuesday, Telangana Chief Minister Revanth Reddy made some firm demands in view of the State's debt burden at about Rs 6.85 lakh crore. He said that the allocation of Central funds to states must be raised from 41 per cent to 50 per cent.
"I strongly place my demand to increase allocation of Central funds to States from 41% to 50%. This will help Prime Minister Narendra Modi's Vision to make India a 5 Trillion Dollar economy," Revanth Reddy added.
The CM further said that large loans were borrowed by Telangana in the last 10 years. "As a result, a significant part of Telangana's revenues is used just for debt repayment. Give us options to either restructure debt or kindly offer us additional assistance," the CM added. "Telangana, the youngest state of India, has a heavy burden of debt Rs. 6.85 lakh crore. The state's progress will be slowed down if debts are not restructured," he further said.
The 16th FC is led by Chairman Arvind Panagariya, who is a former vice-chairman of NITI Aayog.
