Telangana in much better shape than other States, Centre: Harish Rao
Finance Minister stated that TS was in a much better financial condition than the rest of the States as well as the Centre, and debunked the Oppn allegations of massive borrowings by State govt
Hyderabad: Finance Minister T Harish Rao on Monday tore into the Opposition allegations on the financial health of the State, stating that they were only indulging in disinformation campaign.
The Minister, categorically stating that Telangana was in a much better financial condition than the rest of the States in the country as well as the Centre, debunked the Opposition allegations of massive borrowings by the State government.
“The borrowings are well within the Fiscal Responsibility and Budget Management (FRBM) limits. The Centre’s borrowings are 62.2 per cent against the national Gross Domestic Product (GDP), while the State borrowings are just 22.8 per cent against its Gross State Domestic Product (GSDP), Harish Rao said in the State Legislative Assembly.
Replying to issues raised by the legislators on the State Budget, Harish Rao attributed the increase in State borrowings to the Covid-19 crisis after the Centre increased the FRBM limits allowing States to seek additional loans. He pointed out that though the Centre released GST compensation to the State, it was being released as borrowings by the Centre rather than grants. “Despite this, Telangana is in the 25th position among 29 States in borrowings against GSDP,” he said.
The Minister also rubbished the claims of BJP legislators that the State government was blaming the Centre despite the latter releasing funds in a timely manner. He said the State was not keen on getting into a confrontation with the Centre and wanted to maintain cordial relations, without compromising on State’s issues. He said despite extending support to the Centre on several occasions, there was no reciprocation from the Union government to the State in sanction of funds and projects.
“We supported demonetisation, GST implementation and even Article 370. Then, the Centre asked us to clap, lit lights, blow conch and many other things which we followed. We are even taking vaccines as per the Centre’s directions. But we also questioned the Centre on the State related issues including the ITIR, Bayyaram steel plant, tribal university and railway coach factory repeatedly. There has been no response,” he added.
Harish Rao stated that pending arrears of Rs 28,225 crore from the Centre to the State have accumulated over the last six years. The Centre did not release grant of Rs 5,000 crore for Mission Kakatiya and Rs 19,500 crore for Mission Bhagiratha for past four years, despite recommendations by NITI Aayog. Other pending amounts include Rs 1,129.93 crore under 13th Finance Commission for past six years, Rs 817.61 crore under 14th Finance Commission for last four years, Rs 1,350 crore under Backward Area Development Fund for last three years, Rs 723 crore under 15th Finance Commission for last one year.
The Minister lashed out at the Centre for imposing cuts in tax devolution amounting to Rs 24,000 crore as per recommendations of the 15th Finance Commission, but failing to implement the recommendations of the same Finance Commission to release Rs 3,024 crore towards sector specific grant and another Rs 2,350 crore towards state specific grant.
On the State government sources of revenue receipts in view of increased budget outlay, Harish Rao said the government plans to earn revenue amounting to Rs 16,000 crore through sale of government lands and non-performing assets like properties under Rajiv Swagruha and others. Further, the State government is planning to bring a new mining policy to increase its non-tax revenue through auction of certain mines. “Our objective is to increase revenues through various means without imposing tax burden on people of the State and continue with the welfare and development programmes,” he asserted.
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