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

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.