Kurnool: Rayalaseema State movement leader and Congress party former general secretary Kothuru Satyanarayana Gupta has urged the Central government not to reduce the share of tax revenues allocated to states.

Speaking to reporters on Thursday, he stated that currently 41% of tax revenue from the Central government is distributed among the states. However, there are reports that the Centre is considering reducing this share by 1%, which he strongly opposed. He pointed out that if this reduction happens, the Central government would retain an additional Rs 35,000 crores, significantly decreasing the funds allocated to states. He warned that this reduction would negatively impact the development of backward regions.

Kothuru Satyanarayana questioned how development could be achieved if regional parties focused solely on welfare schemes while making election promises. He asserted that cutting State funds to cover the Central government’s fiscal deficit was inappropriate and urged the centre to abandon such plans. He also demanded special initiatives and funding for backward regions, reminding the central government of its past commitments. He noted that after the implementation of GST, states lost their ability to generate independent tax revenues, making them more dependent on central allocations. Additionally, he expressed concern that, unlike in the past, the central government is not providing sufficient financial assistance to states during times of crisis.