The state of Telangana has done well despite non-cooperation from the centre. This was stated by the CAG in its report. The centre has been adopting a partisan attitude and putting a spoke in the process of development.
The Narendra Modi government at the Centre with all the discrimination has tried to weaken the state of Telangana financially. The CAG report says that despite non-cooperation from the centre the state Government has done well with the available finances.
The centre did not disburse the grant in aid funds also for the state, despite many requests from the Chief Minister KCR. But the state has borrowed within the prescribed limits and also repaid the loans in the stipulated time.
The central government is shifting taxes in the form of cess to deprive the states of the Constitutionally due share from the taxes levied by the Centre. The Centre has usurped lakhs of crores from the due share of the states.
The Centre is also imposing various kinds of sanctions arbitrarily, undermining the economic freedom of the state. The state has to fight on a regular basis for the sake of getting the funds which were already earmarked.
The BJP Government was asking the states to strictly abide by FRBM but it was indiscriminately resorting to borrowing without adhering to any rules.
“The Centre’s attitude has become a stumbling block for states like Telangana, which maintains financial discipline by managing loans and investment expenditure within FRBM limits. The Center must lift the economic sanctions imposed on the states and stop any further violation of the rights of the states.
The Centre’s attitude towards Telangana state, which is working with financial discipline and prudence and well within the FRBM limits, was creating a major problem. Telangana state is losing Rs 5,000 crore every year as it refused to implement the anti-farmers power reforms of the Centre.
“In five years, the state lost Rs 25,000 crore under various heads according to the latest estimates.
The BJP government at the Centre is based on the frivolous principle of “strong Centre – weak states” and that’s why the violation of the rights of the states has increased during its reign.
The Centre did not pay heed to NITI Aayog, which recommended the Centre to release Rs 24,000 crore funds to Mission Bhagiratha and Mission Kakatiya schemes.
CM KCR has personally made requests many times to the PM to grant additional funds to the new-formed state, which were all in vain. All are aware of the financial crises faced by our country due to Covid.
In those difficult times too, the Centre did not help the State with any additional funds. Moreover, it slashed the funds that are to be given genuinely to the State.”
The AP reorganization Act had clearly stipulated that tax exemptions should be provided to allow more investments to the newly formed state but the Centre had not given any incentives.
All the promises made in the reorganisation Act such as Bayyaram Steel factory and Kazipet Coach Factory were ignored.
