No additional Central grant to Telangana in 4 years

Hyderabad: It’s official now! The BJP government at the Centre has admitted that additional Central assistance in the form of loans for externally-aided projects in Telangana was going south while grants were nil for the past four years since 2017-18. The revelation by Union Minister of State for Finance Pankaj Chaudhary in Parliament on Monday […]

Hyderabad: It’s official now! The BJP government at the Centre has admitted that additional Central assistance in the form of loans for externally-aided projects in Telangana was going south while grants were nil for the past four years since 2017-18. The revelation by Union Minister of State for Finance Pankaj Chaudhary in Parliament on Monday should put a halt to the State BJP leadership’s repeated assertion that the Centre was ‘generous’ in extending additional assistance to the country’s youngest State.

The Central government said no grants were extended to Telangana under Additional Central Assistance for Externally Aided Projects since the last four financial years. In 2016-17, a grant of Rs 30.72 crore was extended to Telangana. Since then and till December 13, 2021, in the current financial year, not a single rupee was extended to the State. Loans under this category also steadily dropped from Rs 956 crore in 2016-17 to Rs 207 crore in 2019-20.

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This clearly vindicates the TRS leadership’s stand that what Telangana had received from the Centre in all these years since its formation in 2014 was only what the Constitution mandated and nothing additional, despite it being a new and progressive State.

Further, the Reserve Bank of India (RBI) has also not provided any loans to the Telangana government. However, RBI facilitates financial accommodation in the form of Special Drawing Facility, Ways and Means Advance and Overdraft to supplement the temporary mismatches between receipts and payments, the Union Minister informed Lok Sabha, replying to a question by Malkajgiri MP A Revanth Reddy.

In the last five years, no loan was extended by any external agency or refinancing institution to the Telangana government, he added. The public debt of Telangana as of November 30, 2021, stands at Rs 2,37,747 crore (Rs 2,34,912 crore internal debt and Rs 2,835 crore external debt), he added.

‘Official’ stats

Year Loan Grant
2016-17 956.12 30.72
2017-18 636.68 0.00
2018-19 433.36 0.00
2019-20 207.46 0.00
2020-21 -72.66 0.00
2021-22 0.00 0.00
(upto 1 Dec 13, 2021)
**Additional Central Assistance – Externally Aided Projects released to Telangana (in crore)

Estimated amount of principal and interest payable by State (in crore)

Multilateral or Bilateral Institutions 2021-22 2022-23 2023-24
Principal Interest Principal Interest Principal Interest
Govt. of Japan (JICA) 71.37 14.37 71.36 13.67 71.36 12.98
International Bank for
Reconstruction and Development 63.62 7.92 63.67 5.78 63.72 5.56
(IBRD)
International Development 19.85 2.39 18.54 2.36 18.54 2.18
Association (IDA)

Grand Total 154.84 24.68 153.57 21.81 153.62 20.72

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