KCR want Finance Commission to set right the record

Telangana Chief Minister K Chandrasekhar Rao pointed out that a flawed impression was created about the State’s revenue potential, particularly that of Hyderabad, despite the fact that only about 86 per cent of its population belongs to SC, ST and Backward Class communities.Presenting the case before the 14 Finance Commission on Friday, Rao attributed the higher revenue collection in Hyderabad entirely to the practice of major VAT dealers paying their tax in Hyderabad for sales taking place all over the combined state of Andhra Pradesh and not because of the higher revenue potential here. It appears to be the myth, and the present TS state needs to face the challenge to regain the growth momentum and make it an inclusive growth.
Further saying that the state has nine districts are backward, Rao felt the revenue potential of Telangana was quite limited as all but one district were economically backward. He noted that there would be erosion of tax base in the short to medium term. “There has been deceleration in the growth of the economy here in the last few years as it slipped from 10.5 per cent during 2005-06 to 2009-10 to 4.5 per cent in 2012-13,” he observed.Explaining the initiatives since its formation on June 2, Rao said the scheme for distributing three acres of agricultural land to each landless SC family was aimed at improving livelihood, social status and eradicate poverty. Despite the suitability of the State for setting up units, power shortage had become a major hurdle, he admitted. Huge investments were needed to build sufficient power generating capacity.
Enlisting the objectives of his government, Rao informed the commission that his government has decided to restore irrigation tanks and improve green cover in the state. In the process, the government plans to establish a water grid. Accordingly, the government had conducted a household survey to know how the government schemes are reaching poor and needy. Representatives of the Congress, YSR Congress and CPI and industry and trade bodies submitted their memoranda to the Commission. Commission chairman Y.V. Reddy, Members Prof. Abhijit Sen, Sushma Nath, Dr. Govinda Rao, Dr. Sudipto Monde and A.N. Jha, Finance Minister E. Rajender, Chief Secretary Rajiv Sharma, Principal Secretaries V. Nagi Reddy, J. Raymond Peter and B.P. Acharya and several other officers participated in the meeting.