Meeting at Tirupati can take a positive turn in GST application

Dated 11th September, 2014

The 14th Finance Commission of India, headed by former RBI Governor Y V Reddy, has reached the temple town of Tirupathi in Andhra Pradesh to meet the Chief Minister and various stakeholders. The State government and the industry are expecting a positive report from the Commission, which would help the State with financial support including special category status from the Centre.

The Commission members arrived at Tirupathi from New Delhi at around 3 pm today and later in the evening they left for Tirumala, where Lord Balaji temple is located.

On Friday, in a meeting, Andhra Pradesh Chief Minister N Chandrababu Naidu and Finance Minister Yanamala Ramakrishnudu would explain the requirements of the State the current status of various sectors in the wake of the bifurcation of the state.

Andhra Pradesh would be looking at around Rs 3-4 lakh crore in additional allocation of grants for the State during the period between 2015-2020, according to reports. The state would require at least Rs 1.5-2 lakh crore for building up a new state capital.

The state government has already demanded that the Centre should compensate the loss of revenue due to the expected implementation of Goods and Services Tax (GST), which is to the tune of Rs 4,000 crore.

Besides, the announcement of the Special Category status for the state, which would give it tax exemptions to attract more industry developments, also depends on the recommendation of the Finance Commission.

A presentation on key issues indicated by the Finance Commission will be held, following which the Finance Commission would respond to various issues. The Commission would also meet the trade and industry representatives and local bodies and representatives of the political parties. The Commission members, as per the schedule, would leave the temple town on September 13.

The government has also sought the Financial Commission earlier to recommend the centre to issue financial resources to save the state from the financial problems it is faxing after the bifurcation.

The Commission visit include 13 members including the Chairman, of which seven are Commission members.

The Commission would also meet the local political party representatives and local bodies as per the schedule