TRS objects to Centre presenting State finances at meeting on Sri Lanka crisis

New Delhi: The ruling parties of at least four States including Telangana Rashtra Samithi, objected to the States’ finances being discussed at an all-party meeting on the Sri Lanka crisis. While the Centre maintained that it was mentioned to underscore bad consequences of fiscal prudence and freebies, the Opposition parties asserted that it was not […]

New Delhi: The ruling parties of at least four States including Telangana Rashtra Samithi, objected to the States’ finances being discussed at an all-party meeting on the Sri Lanka crisis. While the Centre maintained that it was mentioned to underscore bad consequences of fiscal prudence and freebies, the Opposition parties asserted that it was not the platform to discuss fiscal condition of States.

External Affairs Minister S Jaishankar who initially said there were ‘very strong’ lessons of fiscal prudence, responsible governance and not having ‘a culture of freebies’ to be learnt from the Sri Lanka crisis, hastened to add that there was ‘no political intent’.

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During the meeting, the officials of union Finance Ministry made a presentation on the financial health of States and spoke of certain States’ budgeted and non-budgeted borrowings to underline their fiscal stress. This drew flak from the TRS, YSR Congress, DMK and Trinamool Congress among others. They strongly objected to an irrelevant presentation which particularly tried to highlight fiscal condition of select States accusing them of borrowing beyond capacity.

TRS Parliamentary party leader K Keshav Rao who attended the meeting, strongly objected to the presentation and also the Centre’s remarks on fiscal condition of certain States. He pointed out that the Centre’s Gross Domestic Product (GDP) to borrowing ratio was higher than any State. He pointed out that while Telangana’s borrowings was within the Fiscal Responsibility and Budget Management (FRBM) limits of 3.5 per cent, the Centre’s borrowings have hit 6.2 per cent. He demanded for a discussion on the Centre’s fiscal status.

TRS Lok Sabha floor leader Nama Nageshwara Rao pointed out that the per capita income of Telangana was second highest in the country and the State was borrowing within the Centre’s prescribed norms under Fiscal Responsibility and Budget Management (FRBM) limits. He accused the Centre of criticising the Opposition-ruled States on their fiscal condition, with ‘political motives’.