Hyderabad – A delegation from the Telangana State BJP, led by Malkajgiri MP and former State Finance Minister Eatala Rajender, along with BJP state general secretary Dr. Kasam Venkateswarlu and secretary Dr. S. Prakash Reddy, submitted a 13-point report to the 16th Finance Commission on Monday.
The BJP team urged the Finance Commission to create rules that prevent states from misusing funds allocated for specific purposes. They highlighted that both the previous BRS government and the current Congress government have often diverted funds, making it necessary to introduce strict measures to stop this practice.
They also emphasized that funds allocated to local bodies should be used solely by those bodies. The District Collector should be held accountable for any misuse or delays in the distribution of funds. Local authorities should have full control over the finances.
The party suggested that states focusing on reforms in healthcare, education, and environmental sustainability should be rewarded. This aligns with international goals like the Sustainable Development Goals (SDGs) and supports national interests. Encouraging states to prioritize long-term reforms and sustainability will promote responsible growth across India.
Another key point was the importance of states working towards self-sufficiency and boosting economic competitiveness, while also addressing regional inequalities. The BJP argued that the performance of states in areas like infrastructure, health, and education should influence how much financial support they receive from the central government. This would motivate states to achieve meaningful results for their citizens.
The BJP also proposed overhauling welfare spending by focusing on efficiency, measurable outcomes, and accurately targeting beneficiaries. They suggested linking fund distribution to digital systems, such as the Aadhaar-based Direct Benefit Transfer (DBT) system, to ensure that welfare schemes reach the right people while minimizing leakage.
The delegation proposed that part of the central funds should be allocated based on state performance in key areas like fiscal responsibility, infrastructure development, and poverty reduction. They recommended rewarding states that maintain good debt-to-GDP ratios and include off-budget borrowings (OBBs) in their fiscal calculations.
The BJP also pushed for incentives for states that balance infrastructure development with welfare spending. They suggested offering performance grants for states that invest more in building capital infrastructure.
Additionally, they advocated for the use of just-in-time payments and smart contracts to free up idle funds in state bank accounts, giving states more flexibility in managing their finances. The delegation pointed out that while new infrastructure is often prioritized, maintaining existing infrastructure, such as irrigation projects and canals, is frequently neglected. They urged the Finance Commission to consider this issue in its recommendations.
Lastly, the BJP asked the Finance Commission to give special consideration to Hyderabad due to the city’s role as a hub for inter-regional migration, driven by increased employment and growth opportunities.
