Hyderabad: FGG seeks cap on RBS aid, free power supply

Hyderabad: With the Finance department taking up the exercise of preparing budget for 2022-23, the Forum for Good Governance has given some suggestions, including fixing a cap on Rythu Bandhu, free electricity and avoiding excess expenditure of taxpayers' money.

The FGG wrote a letter to Finance Minister T Harish Rao giving suggestions, which includes implementing the report of State Finance Commission (SFC). The FGG secretary M Padmanabha Reddy said as a convention, the Central government accepts the recommendation of the Finance Commission. At present, about 42 per cent of central tax revenue was passed on to States. The State Finance Commission would recommend for distribution between the State and Local Bodies of the net proceeds of taxes.

After formation of Telangana State, so far, not a single report of SFC was implemented nor made public. The local bodies should get funds from State budget as a right as per SFC recommendations. The FGG secretary requested the Finance Minister to keep recommendations in mind while allocating funds to Local Bodies. The FGG wanted the government to allocate Rs 10,000 crore as special grant to GHMC to attend civic amenities. Stating that many government schools were in dilapidated condition and classes were held under trees, the FGG wanted infrastructure to be improved in government schools. Besides this, health is another issue which needs improvement especially in rural areas. Improvement in these two sectors is a welfare measure touching the lives of the poor, the FGG secretary said.

The FGG wanted the government to control expenditure on Rythu Bandhu by limiting the scheme to 10 acres land holding only, thus saving thousands of crores of rupees of taxpayers' money. It also urged the government to limit the free electricity to agriculture to three motors (or total 10 HP) for a farmer and more than three pump sets should be charged. They wanted the government to impose tax on the toddy without hurting the tapper community and include reduction of taxes on petrol and diesel.