Harish Rao condemns Piyush Goyal’s ‘choti soch’ remark, accuses Centre of financial bias

While 15th Finance Commission recommends a 41 per cent tax devolution to States, the actual share is reduced to only 30 per cent, says former Finance Minister

Hyderabad: Senior BRS leader and former Minister T Harish Rao has strongly condemned Union Minister Piyush Goyal’s remarks, calling it shameful to demean the southern States by referring to their thought process as “choti soch” (narrow mindset). Instead, he said the remarks reflect the “choti soch” of the Union Minister.

In a strong retort, Harish Rao asserted that southern States, including Telangana, have developed systematically, effectively controlled population growth, and emerged as the growth engines of India. He charged the Centre with financial discrimination, stating that while the 15th Finance Commission recommends a 41 per cent tax devolution to States, the actual share is reduced to only 30 per cent due to cess and surcharges.

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The former Finance Minister came down heavily on the Centre, stating that when a State receives revenue in the form of taxes, it has the flexibility to allocate funds according to the needs of its people. “But, by collecting cess and then distributing it selectively, the Centre is showing bias towards certain states while neglecting others. This is an attempt to centralise financial powers and exert control over the States,” he said, questioning if this aligns with the spirit of federalism and the “Team India” narrative of the BJP government.

Harish Rao criticised the Centre for reducing States’ share in centrally sponsored schemes while simultaneously cutting down various Centre-funded government initiatives, depriving them of crucial resources. “It is highly inappropriate to speak disrespectfully when addressing the rights of States. We urge everyone to recognise that the development of southern States, including Telangana, key contributors to India’s growth, ultimately fuels the progress of the entire nation,” he asserted.