Cash-strapped Telangana to seek 'Covid Fund'
Cash-strapped Telangana to seek ‘Covid Fund’
Hyderabad: With the fall in revenue earnings and the financial burden on the exchequer to meet the expenses of the ongoing welfare and developmental activities, the State Government is contemplating to write to the Centre seeking allocation of 'Covid Fund' in the Union Budget 2021-22.
According to sources, the wish list of the Government is getting ready and would be finalised before January 15, the deadline to submit budget recommendations by the State Governments.
The Government is likely to seek central assistance to complete the pending projects like Palamuru –Rangareddy lift irrigation scheme, pending medium irrigation programmes under AIBP ( Accelerated Irrigation Benefit Programme), state-sponsored health and education infrastructure development and development of highways under the Central Road Fund (CRF).
"In the current financial year, the state government was forced to trim the state budget outlay due to steep fall in the revenues. As a result, the government is moving slow in the execution of infrastructure developmental programmes. In view of increased financial needs in the next financial year, the State would have to rely on the Centre to complete the pending programmes," a senior official said.
The state requires at least Rs 20,000 crore additional funds from the Centre to overcome the financial constraints encountered by Telangana in the three quarters of the 2020-2021 financial year, officials said that the GST collections have picked up since November 2018 and the Centre relieved from fund crunch but the States were struggling due to increased expenditure on welfare and development programmes in the crisis time.
The pending demand to earmark special funds for Mission Bhagiratha, Railway coach factory at Kazipet and the fulfillment of premises mentioned in the AP Reorganisation Act mainly the Tribal and Horticulture University, funds to complete all national highway projects and the establishment of IIM (Indian Institute Management) would also be included in the wish list.