HYDERABAD: Rebutting Telangana government’s claim about the Centre not allocating adequate funds to the state, Union finance minister Nirmala Sitharaman on Sunday said the Centre has not discriminated against the state in any manner.
According to expenditure secretary TV Somanathan, the transfer of funds from the Centre to Telangana has been, in fact, much higher as compared to many other states during the 14th Finance Commission period (2015-2020). “The increase in the transfers from general taxes and grants is 128%. This is one of the highest ratios … and as the finance minister pointed out the percentage of devolution is not decided by the finance ministry but by the finance commission, which is an independent body ...,” he said, adding that the devolution increased from Rs46,747 crore in the earlier Finance Commission period to Rs1,06,606 crore in the 14th Finance Commission period (2015-2020).
Whatever is due as per the recommendations of the 14th Finance Commission for the current year have been devolved in the correct proportion and there is no shortfall, he added.
Besides, he also said that Telangana is one of the few states that has been allowed 0.5% extra fiscal deficit as part of its borrowings this year.
Over the last week, Telangana IT and industries minister KT Rama Rao and the FM have traded barbs over this issue, with the state minister stating that the Centre has received over Rs2.73 lakh crore from Telangana through taxes but Telangana has received only Rs1.13 lakh crore in return over the last five years.
According to expenditure secretary TV Somanathan, the transfer of funds from the Centre to Telangana has been, in fact, much higher as compared to many other states during the 14th Finance Commission period (2015-2020). “The increase in the transfers from general taxes and grants is 128%. This is one of the highest ratios … and as the finance minister pointed out the percentage of devolution is not decided by the finance ministry but by the finance commission, which is an independent body ...,” he said, adding that the devolution increased from Rs46,747 crore in the earlier Finance Commission period to Rs1,06,606 crore in the 14th Finance Commission period (2015-2020).
Whatever is due as per the recommendations of the 14th Finance Commission for the current year have been devolved in the correct proportion and there is no shortfall, he added.
Besides, he also said that Telangana is one of the few states that has been allowed 0.5% extra fiscal deficit as part of its borrowings this year.
Over the last week, Telangana IT and industries minister KT Rama Rao and the FM have traded barbs over this issue, with the state minister stating that the Centre has received over Rs2.73 lakh crore from Telangana through taxes but Telangana has received only Rs1.13 lakh crore in return over the last five years.
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