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Raise vertical devolution share from 41% to 50%: AP
April 17, 2025
|The New Indian Express Tadepalligudem
Regarding horizontal devolution, it suggests finance panel to reduce weight given to population from 15% to 5%
CHAIRMAN of 16th Finance Commission Arvind Panagariya has said that Andhra Pradesh made a specific suggestion to increase the vertical devolution share from 41% to 50%. Speaking to the media after the meeting of Commission members with Chief Minister N Chandrababu Naidu, his Cabinet colleagues and officials at the State Secretariat on Wednesday, Panagariya said that regarding horizontal devolution criteria, the State has suggested reducing the weight given to population from 15 to 5%, besides giving weightage for environment.
Specifically regarding demographic performance, Panagariya said, "The Chief Minister has been making the argument that we need to look beyond just rewarding States for bringing down total fertility rates to replacement level. Southern States in particular, where fertility rates have fallen well below replacement levels, face problematic increases in dependency ratios and aging populations in the longer run." Similar concerns were raised by Assam and Tamil Nadu.
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