On Wednesday, Andhra Pradesh Chief Minister N. Chandrababu Naidu urged the Sixteenth Finance Commission to increase the vertical devolution of central taxes from the current 41% to 50% and to provide special financial assistance to help rebuild the state. Naidu's request is significant as his party, the TDP, is a crucial ally in the BJP-led NDA government, with 16 Lok Sabha members supporting Prime Minister Narendra Modi’s administration.

Naidu emphasized the need to address the drop in the share of central taxes allocated to southern states, which has decreased from 24.3% (10th Finance Commission) to 15.8% (15th Finance Commission). He claimed that Andhra Pradesh’s share in horizontal devolution is less than its proportion in the national GDP and population, putting the state at a fiscal disadvantage.

The Finance Commission, led by Chairman Arvind Panagariya, visited Andhra Pradesh from April 15 to 18. Naidu stressed that the state’s reconstruction is essential not only for its growth but also for the nation’s development, aiming to achieve a $2.4 trillion GSDP and a per capita income of $42,000 by 2047 under the "Swarna Andhra 2047" vision. The Chief Minister also requested special allocations from the Centre due to the post-bifurcation challenges the state faces, including support for several key projects such as the Polavaram-Banakacharla river interlinking project, water supply, tourism hubs, logistics infrastructure, and regional growth centres.

Naidu highlighted the need for substantial investments in ports, fishing harbors, multi-modal logistics parks, greenfield airports, inland waterways, and road networks. He also requested funding for skill development, setting up an innovation hub, and improving literacy and local infrastructure in rural and urban areas. He pointed out the fiscal loss caused by the bifurcation of Andhra Pradesh, especially due to the loss of Hyderabad, which contributes 75% of Telangana's income. Naidu also warned that the state’s revenue deficit could rise to Rs 1.43 lakh crore by 2030-31, up from Rs 1.28 lakh crore currently.

Regarding the capital city of Amaravati, Naidu mentioned the need for an additional Rs 47,000 crore for its development, beyond the Rs 31,000 crore already secured from international institutions. He showcased plans for a mega city that integrates Amaravati with surrounding areas, emphasizing its strategic location near major cities like Hyderabad, Bengaluru, and Chennai.

Naidu also informed the commission that Andhra Pradesh serves as a gateway to Eastern countries, with the longest coastline and three major industrial corridors, furthering the state's role in India's growth. The commission members are scheduled to continue their visit in Tirupati and return to Delhi after visiting local bodies and industries.

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