Centre owes Telangana state Rs 1,05,812 crore, Finance Minister tells House

HYDERABAD: The Centre owes a whopping Rs 1,05,812 crore to Telangana, State Finance Minister T Harish Rao told the Telangana Legislative Assembly on Tuesday. Replying to a short discussion on “Central government’s dual policy in implementation of (Fiscal Responsibility and Budget Management Act) FRBM Act - Impact on State’s progress” Harish said that due to the non-implementation of the recommendations of Finance Commission, cut in FRBM loans and other decisions taken by the Centre, Telangana has not received the amounts due to it.

If the Centre gave Telangana the Rs 1.05 lakh crore due to it, there would then be no need for the State to borrow money, he said.Pointing out that the State was outperforming the Centre in financial matters, Harish alleged that the Union government was going for off-budget borrowings, while putting restrictions on the State. The State’s loss was Rs 33,712 crore due to the collection of Cesses by the Centre, he said.

“The Centre claims that it is giving 41 per cent share in Central taxes to States. However, 22 per cent of its income comes through Cesses. It means that the Centre is sharing 41 per cent of its 78 per cent revenue with States. This means that the Centre is actually sharing just 29.6 per cent of its income with States,” Harish explained.

He said per capita income of the Centre was Rs 1,12,162, whereas Telangana’s per capita income was Rs 2,75,443 or about 84 per cent higher.  “The State is spending its borrowings on capital expenditure, while the Centre is utilising its off-budget borrowings for revenue expenditure,” Harish said. “Though Telangana’s population is just 2.9 per cent of India’s population, it is contributing 4.9 per cent of the country’s GDP,” he said. He pointed out that the State topped the revenue growth rate in the county and the debt to Gross State Domestic Produce (GSDP) was within acceptable limits at 23.5 per cent.

Highlighting the injustice done to the State in various aspects and taking potshots at the Modi government’s slogan “Sabka Saath, Sabka Vikas”, Harish said: “Sabko diya haath. Sab me laayaa aviswas. Sabka satya naash ho gaya”.

“One murder and one rape is being reported in the country every minute. The Centre failed in keeping its assurances like providing two crore jobs per year, implementing Make in India, houses to all and others,” Harish said.

‘Will protect Bhadrachalam’
Replying to another short discussion on “Failure of Central government in implementing the assurances under AP Reorganisation Act”, Harish assured that the State government would take all measures and fight its case in Supreme Court to protect the Bhadrachalam Ramalayam under Polavaram irrigation project of Andhra Pradesh.

He said that a case was pending in the Supreme Court on the matter and the State government would effectively present its arguments. Transport Minister Puvvada Ajay Kumar said that the floodwaters were not receding quickly at Bhadrachalam after AP started constructing Polavaram. There was a need to protect the Ramalayam and tribal villages in Bhadrachalam and other areas under Polavaram, Ajay Kumar said.

Congress member Mallu Bhatti Vikramarka and other members too wanted the State government to protect Bhadrachalam temple.Meanwhile, Harish alleged that the Centre failed to implement the assurances given in AP Reorganisation Act-2014, including setting up of Tribal University in Mulugu, steel factory in Bayyaram, and others. “The Centre did not sanction medical colleges,” he alleged.

Refuting the allegations of Opposition members on Kaleshwaram Lift Irrigation Scheme (KLIS), Harish recalled that the estimated expenditure of various projects, including Nagarjuna Sagar, was increased several times. Without launching the works of Pranahita-Chevella, the then Congress government revised the estimates of the project three times, he recalled.

Harish said that after work on KLIS began, the price of steel shot up from Rs 38,000 per tonne to Rs 71,000 and that of diesel from Rs 55 to Rs 100 per litre. Land rates too shot up from Rs 5 lakh per acre to Rs 20 lakh per acre in the State. In the wake of increased prices, the KLIS cost would have been doubled now, the Finance Minister said.

HYDERABAD: The Centre owes a whopping Rs 1,05,812 crore to Telangana, State Finance Minister T Harish Rao told the Telangana Legislative Assembly on Tuesday. Replying to a short discussion on “Central government’s dual policy in implementation of (Fiscal Responsibility and Budget Management Act) FRBM Act - Impact on State’s progress” Harish said that due to the non-implementation of the recommendations of Finance Commission, cut in FRBM loans and other decisions taken by the Centre, Telangana has not received the amounts due to it. If the Centre gave Telangana the Rs 1.05 lakh crore due to it, there would then be no need for the State to borrow money, he said.Pointing out that the State was outperforming the Centre in financial matters, Harish alleged that the Union government was going for off-budget borrowings, while putting restrictions on the State. The State’s loss was Rs 33,712 crore due to the collection of Cesses by the Centre, he said. “The Centre claims that it is giving 41 per cent share in Central taxes to States. However, 22 per cent of its income comes through Cesses. It means that the Centre is sharing 41 per cent of its 78 per cent revenue with States. This means that the Centre is actually sharing just 29.6 per cent of its income with States,” Harish explained. He said per capita income of the Centre was Rs 1,12,162, whereas Telangana’s per capita income was Rs 2,75,443 or about 84 per cent higher.  “The State is spending its borrowings on capital expenditure, while the Centre is utilising its off-budget borrowings for revenue expenditure,” Harish said. “Though Telangana’s population is just 2.9 per cent of India’s population, it is contributing 4.9 per cent of the country’s GDP,” he said. He pointed out that the State topped the revenue growth rate in the county and the debt to Gross State Domestic Produce (GSDP) was within acceptable limits at 23.5 per cent. Highlighting the injustice done to the State in various aspects and taking potshots at the Modi government’s slogan “Sabka Saath, Sabka Vikas”, Harish said: “Sabko diya haath. Sab me laayaa aviswas. Sabka satya naash ho gaya”. “One murder and one rape is being reported in the country every minute. The Centre failed in keeping its assurances like providing two crore jobs per year, implementing Make in India, houses to all and others,” Harish said. ‘Will protect Bhadrachalam’ Replying to another short discussion on “Failure of Central government in implementing the assurances under AP Reorganisation Act”, Harish assured that the State government would take all measures and fight its case in Supreme Court to protect the Bhadrachalam Ramalayam under Polavaram irrigation project of Andhra Pradesh. He said that a case was pending in the Supreme Court on the matter and the State government would effectively present its arguments. Transport Minister Puvvada Ajay Kumar said that the floodwaters were not receding quickly at Bhadrachalam after AP started constructing Polavaram. There was a need to protect the Ramalayam and tribal villages in Bhadrachalam and other areas under Polavaram, Ajay Kumar said. Congress member Mallu Bhatti Vikramarka and other members too wanted the State government to protect Bhadrachalam temple.Meanwhile, Harish alleged that the Centre failed to implement the assurances given in AP Reorganisation Act-2014, including setting up of Tribal University in Mulugu, steel factory in Bayyaram, and others. “The Centre did not sanction medical colleges,” he alleged. Refuting the allegations of Opposition members on Kaleshwaram Lift Irrigation Scheme (KLIS), Harish recalled that the estimated expenditure of various projects, including Nagarjuna Sagar, was increased several times. Without launching the works of Pranahita-Chevella, the then Congress government revised the estimates of the project three times, he recalled. Harish said that after work on KLIS began, the price of steel shot up from Rs 38,000 per tonne to Rs 71,000 and that of diesel from Rs 55 to Rs 100 per litre. Land rates too shot up from Rs 5 lakh per acre to Rs 20 lakh per acre in the State. In the wake of increased prices, the KLIS cost would have been doubled now, the Finance Minister said.