Centre Creating Hurdles In Development Of State: Telangana Finance Minister Harish Rao

Harish Rao claimed that in the history of the country, no government has ignored the recommendations of the Finance Commission in such a blatant manner.

Telangana's Finance Minister T Harish Rao on Monday alleged that the Centre is creating hurdles in the development of the Telangana state. The state has made significant progress through its efforts, while the Centre has been erecting barriers, he said in the assembly while presenting the state budget for 2023-24.

Harish Rao claimed that the Center has abandoned its practice of fully implementing the Finance Commission's recommendations. He said that the 15th Finance Commission recommended a special grant of Rs 723 crores to Telangana and an amount of Rs 171 crore towards nutrition to ensure that the tax devolution should not be less than the amount of devolution received by the state in 2019–20. By not accepting these recommendations, the Centre denied Telangana its due share in the Finance Commission grants.

Harish Rao claimed that in the history of the country, no government has ignored the recommendations of the Finance Commission in such a blatant manner.

"Based on our economic performance and borrowing limits, a sum of Rs 53,970 crore has been included in the budget as borrowings for the current year. However, the central government unilaterally decreased our borrowing limits by Rs 15,033 crore, bringing them down to Rs 38,937 crore. The Center's decision is unjustified and uncalled for, said Harish Rao.

Harish Rao said that NITI Aayog has recommended that a grant of Rs 19,205 crore for Mission Bhagiratha and Rs 5,000 crore for Mission Kakatiya be released by the Center to Telangana. However, he claimed that the central government has yet to release even a single rupee.

He termed as totally undemocratic, the Centre's indifference to the implementation of many provisions in the Parliament-enacted Andhra Pradesh Reorganization Act.

Harish Rao pointed out that A.P. Reorganization Act mandates the Central government to provide tax concessions to the successor States to ensure industrialization and economic growth in the two States. By providing only nominal concessions, the Central government has ignored the interests of both States.

Harish Rao said "Under section 94(2) of the A.P. Reorganization Act, the Central Government shall provide funds for the development of backward areas. Though the Centre is supposed to release a grant of Rs 450 crore per annum, grants for three years amounting to Rs 1,350 crore have not been released."

(With IANS inputs)