Harish Rao lashes out at Centre in budget speech

He also accused the Centre of creating obstacles for the State's development in utter disregard to the federal spirit of the nation

Hyderabad: Finance Minister T Harish Rao on Monday lashed out at the union government for discriminating against the State and the unilateral decision to impose a cut of Rs.15,033 crore by reducing the borrowing limits of the State.

He also accused the Centre of creating obstacles for the State’s development in utter disregard to the federal spirit of the nation.

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Presenting the State budget in the Assembly, Harish Rao said Telangana had been achieving significant development through its efforts.

However, the Central government was creating multiple hurdles. During the 2022-23 fiscal, based on the State’s economic performance and borrowing limits, an amount of Rs.53,970 crore was included in the Budget as borrowings and was approved by the State Assembly.

“But the Central government unilaterally imposed a cut of Rs.15,033 crore and reduced our borrowing limits to Rs.38,937 crore. This decision of the Centre is totally unjustified and uncalled for,” he said.

To complete irrigation projects within the shortest time, the State government resorted to off-budget borrowings well within the limits of FRBM (Fiscal Responsibility and Budget Management) Act.

The 15th Finance Commission recommended a special grant of Rs.723 crore to Telangana, another Rs.171 crore towards nutrition and also to ensure that the tax devolution should not be less than the devolution amount received by the State in 2019-20.

For the period 2021-26, the Fifteenth Finance Commission recommended grants amounting to Rs.5,374 crore to Telangana.

“But the Central government did not accept these recommendations and thereby denied Telangana of its due share in the Finance Commission grants, resulting in grave injustice to the State. Since independence, no government has ignored the recommendations of the Finance Commission,” the Finance Minister said.

He pointed out that though the Andhra Pradesh Reorganisation Act mandates the Central government to provide tax concessions to the successor States in order to promote industrialisation and ensure economic growth in the two States.

By providing only nominal concessions, the Central government has ignored the interests of both the States. Similarly, the backward areas development fund of Rs 1,350 crore for three years promised under the Act was not released.

Further, none of the assurances made under the AP Reorganistaion Act including establishment of educational institutions for the sustained development, railway coach factory at Kazipet, Bayyaram steel plant, tribal university and ITIR among others, were honoured.

An amount of Rs.495 crore towards the implementation of Centrally Sponsored Schemes in Telangana, were inadvertently released to Andhra Pradesh and the issue has not been redressed till date.

On the other hand, the union Power Ministry asked the State government to pay pending dues of TS DISCOMs amounting to Rs.6,756.92 crore including principal and late payment surcharge to Andhra Pradesh Genco within 30 days.

Though Telangana has been pleading with the Central government regarding dues amounting to Rs.17,828 crore payable by AP to Telangana power utilities, the request has been ignored without any reason forcing the State to approach the court.

Harish Rao said due to undue delay on part of the Centre to the Brijesh Kumar Tribunal for finalising Telangana’s share in Krishna River waters, people of Telangana suffered unnecessarily.

As a result, the Palamuru-Ranga Reddy Lift Irrigation scheme and Dindi project on Krishna River got delayed. He reminded that a grant of Rs.19,205 crore for Mission Bhagiratha and Rs.5,000 crore to Mission Kakatiya recommended by NITI Aayog, were ignored by the Centre.