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KCR pins blame on Centre for financial mess

KCR pins blame on Centre for financial mess
Highlights

Chief Minister, while presenting the budget, reveals that the Union government cuts 4.19 per cent in the State’s share from Central taxes

Hyderabad: Apparently blaming the Union government for the delay in the implementation of State and also Centrally sponsored schemes in the State, Chief Minister K Chandrashekar Rao held the Union government responsible for the financial crisis faced by the State in the current financial year.

Presenting the budget 2019-20 proposals in the Assembly, the Chief Minister said in addition to the decline in the State own revenue, the Centre also had made cuts to the funds that are to be transferred to the State. The Centre had cut 4.19 per cent in the State's share from Central taxes (devolution) this year.

In the last five years, funds to the tune of Rs 2,72,926 crore had been collected by the Centre through various taxes from Telangana State.

Like all the States in the country, the Telangana State also received funds to the extent of Rs 31,802crore from the Centre for the implementation of Central schemes in the State.

The State Reorganisation Act stipulated that the Centre should provide grants for the development of backward areas in the State. But in the last five years, the Centre had not given the grant of Rs 450 crore in any year, he rued.

Stating that the Union government also reduced allocations in several other items causing severe loss to the State, he said that the Centre alone decided the broad fiscal policies in the country and the States have no option but to follow the fiscal policies designed by the Union government and Telangana State was no exception.

"We have to tread carefully and cautiously during such a testing time. We cannot go beyond certain limits," he added.

Explaining the status of tax collections, KCR said based on the provisional figures published by the Controller General of Accounts (CGA), it was estimated that there would be 22.69 growth in the tax revenue of the Centre during 2019-20, but in the first quarter, only 1.36 per cent growth was realised. In Telangana State too, we had anticipated 15 percent growth rate but only 5.46 percent could be realised.

Within the limits of FRBM and following the Centre's guidelines, the State is raising funds from the financial institutions. The State government had decided to utilise extra budgetary funds for the construction of major irrigation projects, the Chief Minister clarified.

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