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TS cries foul as Centre trims aid
Is Telangana right about feeling neglected by the Centre in addressing its grievances? Yes, by all means if one is to go by the statistics prepared by the State government.
state OF NEGLIGENCE
The State government expect to receive `25,223.49 crore, but all it could get was only `13,074.50 crore from the Centre
- Funding pattern change hits centrally-sponsored schemes in the State
- Telangana ministers rue ‘callous’ attitude of the Centre
New Delhi: Is Telangana right about feeling neglected by the Centre in addressing its grievances? Yes, by all means if one is to go by the statistics prepared by the State government.
Consequent to the implementation of the 14th Finance Commission, no doubt, there had been a reduction in the Central assistance to State Plan. Added to this, the Centre had also changed the funding pattern for many centrally-sponsored schemes, due to which the State had to provide higher matching contribution in respect to these schemes.
The Telangana government, while preparing the budget estimates for 2015-16, was under the impression that it would be able to secure an aggregate amount of Rs 25,223.49 crore from the Centre. It estimated that it would get a share in Central taxes up to Rs 12,823.25 crore against which it got only Rs 7,327.64 crore. For Plan Grants, it expected Rs 6,497.24 crore, but got only Rs 4,217.46 crore.
For externally aided project, it got Rs 31.55 crore and under Centrally Assisted State Plan it got Rs 4,185.91 crore. Under Finance Commission Grants to Local Bodies, Telangana got Rs 424.09 crore against Rs 905.57 crore it estimated. For calamity relief, it was given Rs 102.75 crore, while it anticipated Rs 247.43 crore.
Under the head of other grants, it was released only Rs 1,002.56 crore against Rs 4,750 crore it estimated, which included CST compensation, special package and other receipts. In all, if the budget estimates made the government to expect Rs 25,223.49 crore, all it could get was only Rs13,074.50 crore from the Centre.
In fact, Finance Department of Telangana says a balance of Rs 7,182.84 crore was due from the Centre. It is badly in need of these funds for implementing its flagship programmes like Mission Kakatiya, Water Grid, Crop Loan Waiver Programme etc. The government contends that release of these CST funds would motivate the States to move over to the GST regime.
Who is at fault?
TS Finance Minister Eatala Rajender feels that the Centre is at fault. He along with the Deputy CMs K Srihari and Mahmood Ali, MPs Jitender Reddy and Prof B Narsaiah Goud, Agriculture Minister P Srinivas Reddy, TS Government Special Representative Venugopala Chary, lashed out at the Centre on Thursday for ignoring its justifiable and rightful demands. If Telangana feels it was tricked into lesser revenues, it is also because of adoption of a different criterion for devolution of Central Taxes to the States.
The share of Telangana got reduced from 2.893 per cent to 2.437 per cent which would convert into reduced devolution amounting to Rs 2,389 crore. Thus, the general logic that due to enhancement in the pattern of devolution of Union Taxes, the States are benefited with higher untied funds did not work in respect of Telangana, the Finance Minister contends.
