Chief Minister of N. Chandrababa Naida with the 16th Chairman of the Financial Commission ArvinD Panagariya during his visit to the Secretariat in Velagapudi on Wednesday. | Photo Credit: Special Arrangement
Main Minister Andr Pradesh N. Chandrababu Naida emphasized the need to increase the share of vertical decentralization in the states.
Delegation 16. The Financial Commission, led by ArvinD Panagariya chairman, visited the secretariat Andr Pradesh on Friday.
At a meeting with delegation, Mr. Naida said that states must play a key role in achieving the goal of developed India. To support this, the financial committee should increase the current share of vertical decentralization from 41% to 50%.
Meanwhile, the proportion of southern states in horizontal decentralization is also decreasing, Mr. Naida noted.
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“In the case of Andhra Pradesh, its share of horizontal decentralization is lower than its share in the national GDP and the population, which is not economically advantageous for the state,” said Naidu.
Grants to rural local bodies
The share of Andhra Pradesh in horizontal decentralization is under its share in national GDP and population, causing fiscal disadvantages. When allocating grants to rural local authorities in the states, it is proposed that the population be assigned 70% of weight, 20% of agriculture and 10% to the geographical area, proposed by the main minister.
Mr. Naida said that while the gram of Panchayats, Mandal Parisads and Zilla Parisads are needed by the CRORE 69 897 GBP, only 7,381 GBPs were currently available.
Another 62,516 crore in the funds are required. The city’s local bodies need 19 871 Crore in grants for drinking water supply, hygiene, road construction, urban transport, street lighting and waste systems. In addition, 16,181 crore are needed to address natural disasters between 2026 and 2031, ”he added.
Published – April 16 2025 20:17
