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Bhatti’s big push for more funds under CSS, seeks pending dues
Urges centre to clear pending grants of ₹1,800 cr
Hyderabad : Deputy Chief Minister Mallu Bhatti Vikramarka has demanded the Union government provide more funds under the Centrally Sponsored Schemes (CSS), remove the conditionalities on borrowings, and clear the pending dues to the Telangana State under the AP Reorganisation Act-2004.
Bhatti, who is also the State Finance Minister, attended the pre-budget meeting conducted by Union Finance Minister Nirmala Sitharaman in Rajasthan on Friday. The Minister said that despite being among the fastest-growing States and contributing significantly to the national economy, Telangana has been underfunded under CSS. He requested the Centre to adopt flexibility in CSS implementation.
The Finance Minister said, “Telangana is requesting enhanced special assistance to States for capital expenditure with an allocation of Rs 2.5 lakh crore annually. Flexibility in fund utilisation without restrictive conditions like branding requirements under Centrally Sponsored Schemes (CSS) is also important.”
Bhatti brought to the attention of the Union Minister that Telangana already urged the Centre to release pending grants of Rs 1,800 crore under Section 94(2). The State was also seeking an extension of the annual Rs 450 crore grant for five more years to support backward districts.
“Telangana seeks funding for critical infrastructure such as industrial parks, irrigation projects, and highway networks,” he said. To enable States to meet their development goals, Telangana was also requesting communication of net borrowing ceilings alongside tax devolution figures during budget presentations. Removal of conditionalities on borrowings will allow greater fiscal space to the State, the minister explained.
The Telangana government also appealed to the Centre to give greater flexibility to use MGNREGA funds for innovative public works that generate employment while creating durable assets. Increased allocations are essential to tackle rural job distress.
“Telangana is also advocating implementation of a PLI scheme for MSMEs in high-potential sectors. Affordable financing under RBI guidelines is needed to revive sick units. GST rationalisation is also critical to ease input costs for MSME industries,” he added.
