Telangana faces double blow due to Centre’s bias, State’s apathy

The State has received a mere Rs 3,899 crore in grants-in-aid from the Centre until October-end, a stark shortfall against the budgeted Rs 21,636 crore.

Hyderabad: Telangana’s development trajectory faces a major setback due to the Centre’s alleged partisan approach in release of grants-in-aid and the State government’s apathy in releasing matching grants under Centrally Sponsored Schemes (CSS).

The State has received a mere Rs 3,899 crore in grants-in-aid from the Centre until October-end, a stark shortfall against the budgeted Rs 21,636 crore.

---

This trend of reduced allocations has persisted over the years, with Telangana receiving Rs 9,729 crore in 2023-24 against a budget estimate of Rs 41,259 crore and just Rs 8,619 crore in 2021-22 against Rs 38,669 crore. States governed by BJP or its allies reportedly fare better in allocations, raising concerns about bias in fund disbursement.

Compounding the crisis, Telangana’s delay in releasing matching grants of Rs 1,200 crore – Rs 1,600 crore may cause the state to forfeit Rs 4,000-5,000 crore in Central funds under various CSS which are reportedly set to lapse by month-end.

The key CSS grants, require the State to contribute 20-50 per cent of the funds for their implementation. The Centre has rejected requests for deadline extensions, leaving Telangana’s development projects at risk.

Under the CSS, Telangana received only Rs 5,387 crore in 2022-23 and Rs 6,158 crore in 2023-24 under the BRS regime from the Centre. However, the Congress government has pegged allocations amounting to Rs 15,168 crore during the current fiscal. Though the Centre released its share, the State government is yet to release matching grants.

Sources indicate that the Centre’s stance remains firm, requiring the State to contribute its share in matching grants to receive funds. With dwindling tax revenue and mounting fiscal pressures, Telangana’s inability to secure crucial funds could further strain its finances and slow infrastructure and welfare initiatives.