Telangana is facing discrimination by the Centre: Harish Rao

Hyderabad, March 7: Finance Minsiter T. Harish Rao alleged that the Telangana was facing discrimination by the Central Government.

"Before I get into the various aspects of the Budget, I would like to mention a bitter truth. The State has suffered discrimination even after formation. In the combined State, we suffered at the hands of the then rulers. And now we suffer a similar discrimination by the Centre," Harish Rao alleged while presenting the annual budget for 2022-23 in Telangana Legislative Assembly on Monday.

"The Centre is creating hurdles in the path of progress of the State. Instead of incentivizing the States which are progressing, the Centre is trying to actively discourage. The discrimination against Telangana started right from the day of the formation of the State. Much before the celebrations of State formation ended, seven mandals of Khammam District were merged in Andhra Pradesh," he alleged.

Harish Rao said that in the very first days of the formation of the State, there was a strike which had to be observed against the undemocratic actions of the Centre. Along with the seven mandalas, Telangana also lost the lower Sileru hydroelectric project. Even the division of the High Court was dragged on for a period of 5 years. The promises made in the Reorganisation Act are also not yet fulfilled. As if this was not enough, whenever there is a discussion on the formation of the State of Telangana, it is commented that it is like - "killing the mother for saving the baby". These comments made by the elders at the Centre are an insult to the people of Telangana, he said.

"The ITIR project allocated to Telangana was cancelled. This project would have led to further development of the IT sector in the State. Lakhs of people would have got direct and indirect employment. The Centre has denied such an opportunity to the State. The Centre has notified 9 districts of the erstwhile State as backward districts. However, the grant which was supposed to be given to these districts is delayed. On one hand the Centre talks about cooperative federalism, but on the other it acts against the spirit of federalism and is encroaching on the powers of the State," he said.

The Finance Minister said that with great hope and expectations, Telangana State submitted a number of proposals to the centre. Chief Minister K. Chandrashekhar Rao himself met Prime Minister Narendra Modi personally and handed over these requests. However, no action was taken, and no funds were released. NITI Aayog has recommended that an amount of Rs 24,205 crores be released for Mission Bhagiratha and Mission Kakatiya schemes. The Centre has not even released 24 paise, he said.

As per section 94 (1) of AP Reorganisation Act, tax incentives are to be given to attract new industries. However, no significant incentives were given. Bayyaram steel factory, Kazipet coach factory, improving the rail connectivity in the State are some of the issues which are still pending. A nominal amount of Rs 20 crore was provided for the Tribal University. An amount of Rs. 495 crores were inadvertently released to Andhra Pradesh during 2014, under the centrally sponsored schemes. These monies are yet to be received. We can understand the negligent attitude of the Centre by this. An amount of Rs. 500 crore which is due as the Centre's share towards Zaheerabad NIMZ is yet to be released, he said.

Harish Rao said it was customary for the Centre to accept the recommendations of the Finance Commission. But the present Central Government has not followed that custom. The 15th Finance Commission has recommended that during the year 2020-21, an amount of Rs. 723 crores are to be given to Telangana as a special grant, but the same was disregarded. State-specific grants of Rs 2,362 crores and sector specific grants of Rs.3,024 crores were also denied. In all, a sum of Rs.5,386 crores were denied to Telangana by the centre, he said.

"All of you are aware of the financial crisis which the country faced due to Corona. However no financial assistance was forthcoming from the Centre. Even the money which is customarily due was also not given. The enhanced borrowing under FRBM was linked to reforms in the power sector. Telangana will be deprived of Rs. 25,000 crores over the next five years at the rate of Rs. 5,000 crores per annum. The autocratic attitude of the Centre can be understood from this. For the sake of these Rs 25,000 crores, the State has to implement a series of reforms in the power sector which are particularly against the farming community interests," Harish Rao said.

The Finance Minister said that the State Government was not interested in making the farmers pay for the power which is being provided to them. "Chief Minister KCR has told Centre that such a policy would not be implemented as long as he is alive. For the sake of four crore people of Telangana, the Government is willing to forego Rs 25,000 crore rupees. This is due to the fact that this government is for the welfare of the farmers and the leader himself is the son of a farmer," he said.

"Even in the latest Union Budget, no justice was done to Telangana. No irrigation project was given national status, no money was given to any programme. It was only sweet talk without the offer of any concrete help. Even the borrowing is now conditional. As per the devolution formula recommended by the Finance Commission, the States are supposed to get 41% of the divisible pool. However, the Centre, by imposition of cesses, is constantly reducing the size of the divisible pool. The cesses that are imposed by the Centre are not a part of the divisible pool. The States are receiving only 29.6%, instead of 41% leading to a shortfall of 11.4%. The same was pointed out adversely by the Fifteenth Finance Commission also. However, the Centre has brushed aside those comments and has not taken any corrective action," he said.

In spite of all the adversities and limitations, Harish Rao claimed that Telangana has become a financially strong economy. "This is due to the visionary leadership of our Chief Minister, non-corrupt administration, and effective fiscal policies," he said.