Grants-in-Aid: Centre’s discrimination towards Telangana continues

Telangana has been left empty-handed even as the Centre disbursed significant amounts up to Rs.500 crore in Grants-in-Aid to several States

Hyderabad: Telangana continues to face discrimination from the Centre in terms of sanction of funds. In the latest instance, Telangana has been left empty-handed even as the Centre disbursed significant amounts up to Rs.500 crore in Grants-in-Aid to several States in April and May during the first quarter of the current financial year.

Telangana’s State budget estimates for the current financial year projected Rs.41,259.17 crore under central grants and contributions (2023-24).

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The State government was expecting around Rs.400 crore during April and May in terms of Grants-in-Aid alone. However, the latest report by the Comptroller and Auditor General last week revealed the total absence of grants to the State in April. This when States like Uttar Pradesh, Bihar and Gujarat received nearly Rs.500 crore in the same period.

Similar treatment was meted out during May as well, according to the Finance department officials in the State.

“In April last fiscal, the union government released Rs.189.66 crore against an estimated Rs.41,001.73 crore of grants. Though we did not receive funds on expected lines, there was some respite. But this fiscal, no funds at all were released for April and May,” a top official in the Finance department told Telangana Today.

Meanwhile, the report highlights that while the estimated debt under capital receipts amounted to Rs.38,234.94 crore, the State government raised Rs.5,026.30 crore through loans in April alone. Additionally, the total revenue and capital gains for April reached Rs.15,085.34 crore.

Sources said the State government was forced to raise huge funds through loans in the first month itself in the absence of Central funds. Of the total amount, the government spent a total of Rs.12,643.85 crore, with a significant portion of Rs.6,291.46 crore spent towards employee salaries.

Further, employee pensions accounted for Rs.1,466.32 crore of expenditure, while scheme subsidies and welfare schemes utilised Rs.702.82 crore and Rs.324.41 crore, respectively.

BJP leaders have been arguing that the State government’s budget estimates were excessively high and contend that the budget includes NITI Aayog‘s recommended grants.

But it is now evident that amidst all the exchange of criticism and allegations, the Central government did not release any funds at all to the State in April and May. It is uncertain whether the union government would loosen its purse strings at least in June.