Hyderabad: TS has suffered revenue loss due to reduction of its interse share of tax devolution from 2.89 per cent in 2014-15 to 2.44 per cent during 14th Finance Commission period.
Because of this, TS has lost about Rs 2,731.08 crore in the current fiscal. The Centre decides the state’s share in tax devolution on several parameters, in which population plays a major role.
Officials said after bifurcation, the 14th Finance Commission decided the AP and TS share in tax devolution at the rate of 58:42 ratio. The officials said the actual population and growth rate is more than what was considered by the commission. The cut in interse share of the TS by 0.45 per cent has reduced the tax devolution by Rs 2,389 crore in FY 2015-16.
However, the Centre increased the state’s share in tax devolution in the next financial year. In the present fiscal, the TS government gets Rs 1,000 crore every month on an average as its share in tax devolution. Next fiscal, it is likely to get Rs 12,036 crore, according to rough estimates.
However, TS will lose about Rs 3,010 crore in the next fiscal due to the 14th Finance Commission’s decision. Officials said the increase in transfer to state is much below the average of all states. On per capita basis, the increase in tax devolution in 2015-16 is Rs 858 as compared with national average of Rs 1,564.
AP to get Rs 2,580 crore more: Due to increase of interse share in tax devolution, AP will get Rs 2,580 crore more in the next financial year. AP will get about Rs 1,000 crore more as compared with TS. In the current financial year, AP is getting Rs 18.672 crore as its share in tax devolution and in the next financial year, it will get Rs 21,252 crore.
