Yanamala puts BJP in spot over Central funds

Amaravati: Finance Minister Yanamala Ramakrishnudu and BJP floor leader P Vishnukumar Raju locked horns in the Assembly on Wednesday over devolution of funds to the state from the Centre.

The Finance Minister said the Centre had reversed funds after releasing them to the state which had never happened in the past. This apart, the Centre was withdrawing its welfare schemes, pushing the state to a tight corner.

Answering to queries during the Question Hour in the Assembly, the minister said the Centre did not release any funds under special package or special category status account and added that Rs 30,000 crore was supposed to be released to the state as grants under the Externally Aided Projects (EAP) alone, but the Centre released only Rs 37 crore under various heads in this regard.

Reacting to the remarks of BJP floor leader P Vishnukumar Raju over devolution of funds from the Centre annually, Ramakrishnudu said the state government has a constitutional right to get funds from the Centre as its share of taxes. 

He asked the Centre to cancel its schemes if they cannot continue them as leaving them midway was placing a burden on the state. He wanted the Centre to scrap all its schemes and hand over its share of 60 per cent to the state so that it could use the funds on welfare schemes. The Finance Minister said the Centre's attitude was against the spirit of federal system. 

The backward districts also did not get funds as per the Act, he said. He demanded that the Union government should release funds on par with North-Eastern States which were enjoying Special Category Status (SCS). 

He wanted the Centre to give tax benefits to the state, including industrial incentives. The state was demanding a payment of Rs 27,000 crore under this incentives scheme, he said and added that the state could get compensation from GST (Goods and Services Tax).