Hyderabad, Sep 10 : Telangana Chief Minister A. Revanth Reddy on Tuesday urged the 16th Finance Commission to help the state in managing its loans and interest payments.

Speaking at the Finance Commission's meeting with the state government, he demanded options to restructure debt or additional assistance.

He also demanded on behalf of all the states that the allocation of Central funds to states be enhanced from 41 per cent to 50 per cent.

Revanth Reddy told the panel that Telangana has a heavy burden of debt, which stands at over Rs 6.85 lakh crore, as of the end of the last financial year. This includes both budgeted and off-budget borrowings.

He said large loans borrowed in the last 10 years created a situation where a significant part of the state's revenues is used to repay debt. "If we don't manage our loans and interest payments, it will slow down our progress. We seek your support in helping us address this problem. Give us options to either restructure debt or kindly offer us additional assistance," he said.

The Chief Minister stated that Telangana, the youngest state of India, is an economically growing and rapidly transforming state, making a significant contribution to the country's growth

"Despite strong advantages, and a good economy, we are facing huge challenges," he said while mentioning the huge debt burden.

He also demanded an increase in Central allocation to states. "I also strongly place my demand and speak for all states on this. Increase allocation of Central funds to states from 41 per cent to 50 per cent," he said.

The Chief Minister said if the Finance Commission increases the Central allocation, he would take huge responsibility for Prime Minister Narendra Modi's vision to make India a 5 trillion dollar economy.

"I will make Telangana one trillion economy. Kindly help Telangana, so we can help India become the third largest economy of the world," he added.

Seeking the support of the Finance Commission in strengthening fiscal federalism, he exuded confidence that recommendations would help Telangana overcome its current challenges and continue its journey on the path of growth.

Deputy Chief Minister Mallu Bhatti Vikaramarka, Minister Sridhar Babu, Uttam Kumar Reddy, Komatireddy Venkat Reddy, Ponnam Prabhakar, P. Srinivas Reddy, government advisors K. Kesava Rao, Mohammed Ali Shabbir, Chief Secretary Santhi Kumari, and other officials were present.

Finance Commission Chairman Arvind Pangariya, who was on a two-day visit to the state, met municipal commissioners and leaders of various political parties on Monday.

/IANS