Centre failed to rescue Telangana: CM KCR

Hyderabad: Though Telangana State had suffered a loss of Rs 52,750 crore revenue this financial year due to the impact of corona pandemic and suffered another blow due to the heavy rains and floods, the Centre had failed to come to the rescue of the state government. It had not released even a single rupee as assistance towards disaster management.

This was the outcome of the detailed review meeting Chief Minister K Chandrasekhar Rao had with officials from the Finance department here on Saturday at Pragathi Bhavan. As a result, the government has decided to make amendments and alterations to the state annual budget. The Chief Minister also remarked that it was once again proved that the Centre makes empty promises and does not take any action. If that is the attitude, what is the point in central teams visiting the state, he wondered.

Officials of the Finance department said the revenue receipt had dipped badly during the first seven months, April to October. It could generate revenue of only Rs 39,608 crore revenue during the seven-month period from taxes and non-tax resources. The 2020-2021 Budget proposals were prepared estimating that the state's revenue growth rate would be 15 per cent. But it did not happen due to lockdown.

The budget proposals for 2020-2021 were prepared estimating that the state would receive Rs 67,608-crore income through taxes and non-tax resources.

But as per the current estimates it may not be possible to mop up more than Rs 33,704 crore. With this, the state's own income will be reduced by Rs 33,904 crore. The state government's share in the Central taxes has also decreased considerably. In the Union Budget, it was mentioned that for 2020-2021 financial year, the Centre would allocate Rs 16,727 crore to the State as its share. According to this, between April to October the state should get Rs 8,363 crore but the state received only Rs 6,339 crore from the Centre.

By the end of the financial year, it is estimated that the state would get Rs 11,898 crore instead of Rs 16,727 crore, which was its actual due. With this, the state would lose Rs 4,829 crore. Under several centrally-sponsored and assisted schemes, the state must get Rs 9,725 crore from the Centre. Till October, it got only Rs 4,592 crore as against a due of Rs 5,673 crore. By end of financial year, it may not get more than Rs 8923 crore, officials said. In view of this heavy shortfall in state income, the Chief Minister asked officials to fix priorities and accordingly prepare a financial management plan.