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Time of India
21-07-2025
- Business
- Time of India
Telangana records impressive PCI growth of over 80% in a decade
Hyderabad: A reply to a question in Parliament on Monday revealed that Telangana is one of only three states in India to record over 80% growth in per capita income (PCI) for two consecutive years in span of over a decade at constant prices, using the base years of 2013 and 2014. Compared to 2013, Telangana achieved an impressive 84% growth in PCI by 2024 and an even higher increase of 85% by 2025 when compared to 2014. These figures indicate impressive rise in people's purchasing power in the state during the said period. Constant prices refers to value of goods and services adjusted for changes in price level over time, providing a clearer picture of real income growth as opposed to nominal increases. This adjustment allows for meaningful comparisons of income over different years without the distortion that inflation can introduce. The data provided in the reply indicates that, at constant prices, the PCI increased from 96,039 in 2013 to 1,77,000, and from 1,01,424 in 2014 to 1,87,912 in 2025. You Can Also Check: Hyderabad AQI | Weather in Hyderabad | Bank Holidays in Hyderabad | Public Holidays in Hyderabad Karnataka and Odisha are the other two states that have also witnessed more than 84% growth in PCI during the same period. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like American Investor Warren Buffett Recommends: 5 Books For Turning Your Life Around Blinkist: Warren Buffett's Reading List Undo In fact, Karnataka achieved over 90% growth in PCI between 2014 and 2025. Rise in avg real incomes According to experts, when income is analysed at constant prices, any reported increase signifies a true enhancement in people's purchasing power, rather than an elevation solely driven by inflationary pressures. For instance, an impressive 85% increase over a decade indicates not just growth, but a substantial rise in average real incomes, reflecting a strengthening economy. PR Madhusoodanan, a distinguished professor and director at the Centre for Economics and Finance at the Administrative College of India (ASCI), emphasised on the importance of analysing per capita income at constant prices. "A reasonable and consistent growth rate in per capita income from a defined base year clearly indicates that the economy is thriving, supported by a rising Gross State Domestic Product (GSDP)," he said. "In dynamic states such as Telangana, this GSDP growth is predominantly fuelled by the booming service sector, with Hyderabad standing out as a key contributor, driving economic activities and opportunities."
The Hindu
21-07-2025
- Business
- The Hindu
₹7,425 crore special development funds will be released to 196 MLAs, says Rayaraddi
Congress MLA Basavaraj Rayaraddi has said that ₹7,425 crore, in all, will be released to 196 MLAs of the ruling and Opposition parties as special grant under Chief Miniter's Special Infrastructure Development Scheme and budgetary provision had been made for the purpose. Addressing presspersons in Hubballi on Monday, Mr. Rayaraddi, who is Economic Advisor to Chief Minister, rubbished the Opposition allegation that the State government does not have enough funds for development works. 'I am part of the budget preparation team which held elaborate discussions. In the budget for 2025-26, ₹83,000 crore has been earmarked for capital expenditure which is more than what the previous BJP government set aside for the purpose,' he said. Mr. Rayaraddi said that in the special grant scheme, MLAs under BBMP limits have been excluded as the government has already announced special grants to constituencies in the BBMP limits and they are already getting more funds. 'Of the 224 MLAs, 28 MLAs (12 Congress, 16 Opposition) are under the BBMP limits and they have been excluded. It has been decided to release ₹50 crore for Congress MLAs and ₹25 crore to Opposition MLAs. It has also been decided to give ₹25 crore to Congress MLAs in Kalyana Karnataka as under KKRDB (Kalyana Karnataka Region Development Board) too special grants have been allocated. It all comes to ₹7,425 crore,' he said. 'However, keeping in mind the likely demand of MLAs from Kalyana Karnataka region for grant of ₹50 crore instead of ₹25 crore, we have set aside ₹8,000 crore,' he said. Mr. Rayaraddi also clarified that in continuation of the decision taken on special grants, Chief Minister Siddaramaiah will be personally having one-on-one meetings with MLAs which will be held for three days. 'In fact, the proforma has already been given to MLAs to indicate their priorities for special grants and they have been asked to submit them indicating their choice. Subsequently, the Chief Minister will have one-on-one meetings with them. We have also suggested to the Chief Minister to have similar meetings with Opposition MLAs too which may happen subsequently,' he said. To a query, he clarified that the issue of special grants has nothing to do with the visit of AICC general secretary Randeep Singh Surjewala, as it was decided earlier. On the reduced grants for Opposition MLAs, he said that the BJP started it during its regime. 21.6% collection Mr. Rayaraddi said that out of the total tax collection for the current fiscal (2025-26), the State government has already received ₹43,935 crore in the first quarter (June-end), which is 21.6% of the targeted collection (₹2,03,000 crore). 'Our economic condition is strong. Our expectation is that we may reduce the budget deficit to zero in the next fiscal,' he said. Mr. Rayaraddi said that Karnataka is No 2 in the country in GST collection and No 1 in GSDP (Gross State Domestic Product) which indicates that the State is a prosperous one. 'The required assistance from the Centre will help it further grow. However, the State is yet to receive ₹11,000 crore recommended in the 15th Finance Commission and ₹5,000 for the Bhadra Irrigation Project which has been declared a national project,' he said. On Union Finance Minister Nirmala Sitharaman's statement that recommendation is only in the interim report and not in the final one, Mr. Rayaraddi sought to know why Kerala has received funds according to what they termed as interim report, while Karnataka has not. Mr. Rayaraddi said that the State government has already approached the 16th Finance Commission with details of the injustice meted out to it in devolution of funds. The reduction in Karnataka's share under the 15th Finance Commission to 3.647% from 4.713% has resulted in a cumulative loss of over ₹80,000 crore during the award period and this has been brought to the notice of the commission. 'The commission has assured us of studying it further and making amends,' he said. Petty issues The senior Congress leader said that instead of assisting the ruling party in getting issues concerning funds and development resolved, the BJP leaders are doing politics over petty issues and making comments. 'Ideally, as a responsible Opposition, it should have helped the ruling party in addressing the issues of development concerning the State,' he said.
Mint
10-07-2025
- Business
- Mint
State govts must provide adequate funds to Science & Tech Councils: NITI Report
New Delhi, Jul 10 (PTI) State governments should provide adequate financial resources to Science & Technology (S&T) Councils, and slightly restructure their governing bodies to drive innovation and technology-led growth, NITI Aayog said on Thursday. In a report titled 'A Roadmap for Strengthening State S&T Council', the Aayog said that these councils must explore wider funding opportunities available with different departments of the central government for activities related to the overall mandate. "State governments should provide adequate financial resources to the councils to enable them to carry out the regular activities effectively and to initiate new activities in advanced and emerging areas of S&T," it said. The government think tank emphasised that it would be desirable that each state allocates at least 0.5 per cent of Gross State Domestic Product (GSDP) on S&T. It also recommended that the governing body of the councils must be slightly restructured and expanded so as to make it more capable of taking informed policy decisions and strategic planning. "The Governing Council may continue to be chaired by the Chief Minister or the S&T Minister of the state, as the case may be; however, it must be expanded to include more expertise," it said. The think tank suggested that the councils should also explore establishing linkages with industry bodies, PSUs, and other possible support agencies in the state for attracting support and financial resources for different activities. "Such linkages will indirectly help promote university-industry interaction in different activities of the councils," it said. While noting that the councils should have a core manpower strength to drive the major activities of the councils in an effective and accountable manner, the Aayog said all such positions should be fully supported by the state government, ensuring financial stability and commitment. It pointed out that while some states have leveraged S&T institutions to drive innovation and technology-led growth, others face several challenges related to fragmented mandates, irregular funding flows, and weak institutional capacities. Many councils are constrained by non-regularised manpower, absence of performance-linked incentives, and limited autonomy in decision-making, impeding long-term planning and execution, it said. The State S&T Councils, with their limited resources, have made a significant contribution in supporting patent facilitation, remote sensing applications and GI mapping, grassroots innovation, science popularisation, and capacity-building programmes. In recent years, India's R&D ecosystem has witnessed expansion in absolute terms, with Gross Expenditure on Research and Development (GERD) increasing from ₹ 60,196.75 crore in 2010-11 to ₹ 1,27,380.96 crore in 2020-21. It is noteworthy that India's R&D funding structure is still largely government-driven.
Time of India
10-07-2025
- Business
- Time of India
State governments must provide adequate funds to science & tech councils: NITI Report
State governments should provide adequate financial resources to Science & Technology (S&T) Councils, and slightly restructure their governing bodies to drive innovation and technology-led growth NITI Aayog said on a report titled 'A Roadmap for Strengthening State S&T Council', the Aayog said that these councils must explore wider funding opportunities available with different departments of the central government for activities related to the overall mandate."State governments should provide adequate financial resources to the councils to enable them to carry out the regular activities effectively and to initiate new activities in advanced and emerging areas of S&T," it government think tank emphasised that it would be desirable that each state allocates at least 0.5 per cent of Gross State Domestic Product (GSDP) on S& also recommended that the governing body of the councils must be slightly restructured and expanded so as to make it more capable of taking informed policy decisions and strategic planning."The Governing Council may continue to be chaired by the Chief Minister or the Sundefined however, it must be expanded to include more expertise," it think tank suggested that the councils should also explore establishing linkages with industry bodies, PSUs, and other possible support agencies in the state for attracting support and financial resources for different activities."Such linkages will indirectly help promote university-industry interaction in different activities of the councils," it noting that the councils should have a core manpower strength to drive the major activities of the councils in an effective and accountable manner, the Aayog said all such positions should be fully supported by the state government, ensuring financial stability and pointed out that while some states have leveraged S&T institutions to drive innovation and technology-led growth, others face several challenges related to fragmented mandates, irregular funding flows, and weak institutional councils are constrained by non-regularised manpower, absence of performance-linked incentives, and limited autonomy in decision-making, impeding long-term planning and execution, it State S&T Councils, with their limited resources, have made a significant contribution in supporting patent facilitation, remote sensing applications and GI mapping, grassroots innovation, science popularisation, and capacity-building recent years, India's R&D ecosystem has witnessed expansion in absolute terms, with Gross Expenditure on Research and Development (GERD) increasing from Rs 60,196.75 crore in 2010-11 to Rs 1,27,380.96 crore in is noteworthy that India's R&D funding structure is still largely S&T Councils operate within a shared national framework, but their capacities and priorities are shaped by the regional requirements of the state, resources available to them, and institutional support they have available to them.
Mint
09-07-2025
- Business
- Mint
Need to go a bit beyond standard parameters: Finance Commission member
New Delhi: The Sixteenth Finance Commission that has just completed its round of state visits may have to go "a bit beyond" the standard parameters while computing the share of the country's revenue kitty between states and the Centre, said Dr Manoj Panda, a member of the commission said. While Panda did not elaborate, his statement comes amid a growing clamour from wealthier Indian states–typically bunched around the western and southern regions–to be given a bigger share of the revenue. Panda did mention, however, that the states' tax-to-GSDP (Gross State Domestic Product) ratios have remained stuck at 6-7% levels and that future tax collections will primarily hinge on GSDP growth. His remarks, made in an interview with Mint, come as the 16th Finance Commission enters the deliberation phase, having completed its round of state visits over the past year. The Commission, chaired by Dr Arvind Panagariya, is now going through detailed memorandums submitted by various states and departments to shape its recommendations for the 2026–31 period. "A major debate that has emerged is from the developed states in western India as well as southern India is that they are contributing more to the overall tax kitty of the country, but they are not getting adequate returns," Panda said. "Of course, in any federation, there has to be some give and take. The weaker states have to be supported, but developed states are saying that the low-income states can't be supported beyond a point," he added. Richer states have urged the 16th Finance Commission to take into account their contribution to national growth and tax revenue while recommending horizontal allocations across states. These states argue that while they contribute disproportionately to national GDP and tax collections, the distribution formula does not adequately reward their economic performance. 'They don't want to feel 'penalized'—a word that is often being used," Panda said. "I think we may have to go a bit beyond the standard parameters," he added. Standard parameters list the various metrics used by the 15th Finance Commission to decide on the division of the Central and state revenue kitty. These are: population, area (of the state), forest and ecology, income distance (disparities in per capita GDP), tax and fiscal efforts, and demographic performance. Panda said there is some scope to improve tax enforcement at the state level, but noted that states have little room to manoeuvre on indirect tax rates, which are governed by the GST Council. "The Commission completed the state visits just a month ago. Right now, discussions are going around state finances, general government finances and other related issues from the memorandums submitted by state governments, and presentations made by different central government departments regarding their past expenditure and expected levels for the next five years," Panda said. He added that the Centre's memorandum is expected by July or mid-August. The panel is working to an official deadline of 31 October, and Panda said that 'there is unlikely to be any delay." The 16th Finance Commission's recommendations will cover the five years from 1 April, 2026, to 31 March, 2031. The 16th Finance Commission, like its predecessors, is tasked with recommending how central tax revenues should be divided between the Centre and the states (vertical devolution), and how that share should be distributed among states (horizontal devolution). It will also assess funding needs for disaster management and for strengthening local governments. "You see the total kitty is given. We have to decide how much to keep for the Centre and how much to give to states. The 15th Finance Commission recommended a 41% share for states and 59% for the centre out of the divisible pool of the central taxes," Panda said. "The other thing is how to do the horizontal distribution. In the horizontal distribution too, the total is 100. The moment you give more to one, somebody else will suffer. These are the balancing acts we have to do. We can't keep everybody happy in a zero-sum game," he added. The debate also highlights diverging growth trajectories among states. While some traditionally weaker states are showing signs of improvement, Uttar Pradesh being a notable example, others continue to lag. "If the average income levels of states converge in the long run, resources needed on equity consideration will reduce," Panda said. On state-level debt, Panda observed that capital expenditure-related borrowing remains sustainable if managed within the prudential norms outlined in the Fiscal Responsibility and Budget Management (FRBM) framework. States are generally expected to maintain fiscal deficits within 3% of GSDP, he said. During the pandemic, however, this threshold was relaxed by an additional 0.5%, and the Centre allowed 50-year interest-free loans to support state spending, he added. "The Finance Commission can only suggest states keep their debt within a limit. Beyond that, the Centre and states will need to work together to keep expenditure, particularly subsidies, within bounds," he said. "Overall, there should be some kind of broad consensus among the governments to avoid competitive populism," Panda added. States are also demanding a higher share of central revenues, citing rising social sector commitments. Meanwhile, the Centre has increasingly leaned on cesses and surcharges, which fall outside the divisible pool, to meet its spending obligations, even after raising the states' share by 10 percentage points a decade ago. "It's a tough question to answer what exactly the requirements of the states are, and how they should be addressed. But, compared to a decade ago, states now are getting much more than before," Panda added.
