Telangana Chief Minister K Chandrashekhar Rao critisised the Union Budget terming it “totally disappointing” on Saturday.
K Chandrashekhar Rao alleged that the Centre has shown discrimination against Telangana by imposing severe cuts on the funds to be released to the state.
“It was atrocious that the Centre had reduced the ratio of the state in the central taxes. There is a danger of having funds scarcity for several welfare and development programmes, schemes in the state due to the heavy cuts in the central funds,” K Chandrashekhar Rao, who held a high-level meeting with top state officials discussing the central budget and its an adverse effect on Telangana, said.
K Chandrashekhar Rao held a four-hour-long discussion with the senior officials at Pragati Bhavan on Saturday and expressed that it was a constitutional right of every state to have a share in the central taxes.
“In the 2019-20 financial year, Rs 19,718 crore was a rightful due from the Centre to the Telangana state. In the last budget, the Centre had announced that this amount would be paid to the Telangana state. But in the revised estimates, it was reduced to Rs 15,987 Crore. With this, in the present financial year, among the funds due from the Centre, there is a reduction of Rs 3,731 Crore. In anticipation of obtaining Rs 19,718 crore this also led to the state financial planning going awry as the Centre imposed cuts in the release of funds to the state.”
K Chandrashekhar Rao termed it “sheer incompetence” of the Centre to decrease the ratio of the state in the central funds given to the states. K Chandrashekhar Rao said, “Reducing the funds to the tune of a whopping 18.9 per cent in 2019-20 clearly demonstrated the Centre’s faulty fiscal management.”
K Chandrashekhar Rao pointed out that there will be a direct decrease of Rs 2,381 crore of funds from the Centre to the state.
“Reducing such a whopping sum of funds to the state is nothing but an out-and-out discrimination. This will have an adverse impact on the Telangana’s development plans,” K Chandrashekhar Rao said.
K Chandrashekhar Rao alleged that the Centre is committing a great fraud and cheating on the Goods and Services Tax (GST) front.
“In the GST Act that was brought in 2017, it was clearly stated that for the state, which registered less than 14 per cent of growth rate, deficit caused by the GST would be compensated for five years. As per this, the Centre owes a compensation of Rs 1,137 crore to the state. The Centre has not given any clarity on these compensation funds,” K Chandrashekhar Rao said.
While K Chandrashekhar Rao expressed disappointment over a substantial cut in the Centre’s budget on the funds to be allocated to the urban development, he showed displeasure instead of Niti Aayog recommending to the Centre to allocate Rs 24,000 crore to Telangana for Mission Bhagiratha and Mission Kakatiya programmes and he himself on several occasions requested the Centre to make these allocations, there was no mention of this in this Union Budget.
“We have incurred huge expenditure to construct major irrigation projects to supply water to about one crore of agriculture lands in the state. A lot of expenditure is also needed to maintain these projects. We have requested the Centre’s help in this regard. But the Centre had not allocated any funds,” K Chandrashekhar Rao said.
K Chandrashekhar Rao said that the Centre had imposed heavy cuts on the funds to be given to the states. “This will cause heavy damage to the development activities in the state,” K Chandrashekhar Rao said.