Continue existing 41% devolution of tax revenues to States: BJP leaders

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20-Point Programme Chairman Lanka Dinakar, who is also BJP’s chief Spokesperson for Andhra Pradesh, and Jammalamadugu MLA Ch. Adinaryana Reddy on Wednesday submitted a memorandum of proposals to 16th Finance Commission Chairman Arvind Panagariya for his consideration. 

They requested Mr. Panagariya to continue the existing 41% devolution of tax revenues to the States, to duly take into account the State’s finances before finalising the devolution, and continue the revenue deficit grant for States having the post-tax devolution revenue deficit as per the existing parameters.

Mr. Dinakar said priority should be given to the sector-specific grants for safe drinking water supply, installation of dialysis centres in fluorosis-affected districts, implementation of reforms in agriculture, among others. 

Special attention is required to evaluate the performance of the aspirational districts and blocks, and apart from the criteria of population and area, slums and infrastructure facilities should be considered for providing funds to the local bodies.

Further, Mr. Dinakar and Mr. Adinarayana Reddy wanted due attention to be paid to providing adequate funds for disaster risk management, and sought timely release of matching grants under the Centrally Sponsored Schemes (CSS). The funds under various CSS that lapsed in 2019-24 should be made available to the State to enable it to avail those schemes for the benefit of the people, the BJP leaders added.

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