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The Union government is making tall claims on a daily basis both in the Parliament and outside that there is no effect of an economic slowdown in the country but the facts are quite different from this.

Chief Minister Sri K Chandrashekhar Rao held a review meeting on Saturday at Pragati Bhavan on the State’s financial position—Funds to come from the Centre and other issues. Government’s Chief Advisor Sri Rajiv Sharma, Special Chief Secretary Sri Somesh Kumar, Principal Secretary (Finance) Sri Ramakrishna Rao, CMP Principal Secretary Sri S Narsing Rao, Special Secretary Sri Bhoopal Reddy and others participated. In this review meeting actual financial situation and hard-hitting facts have emerged.

The Centre decides on the share of the States in the taxes and they are announced in the Budget. For the financial year 2019-20, for the Telangana State under the taxes sharing, the Centre announced in its Budget that it will give Rs 19, 719 Crore. This is 6.2 per cent more than the allocations made in the 2018-19 Budget of Rs 18, 560 Crore. However, in the last six months, the Centre gave Rs 10, 304 Crore only as the tax share. In the last financial year for the eight month period, the Centre gave Rs 10, 528 Crore. In other words, compared to 2018-19 financial year, this financial year till date the Centre gave Rs 224 Crore less. This would mean that as against 6.2 per cent hike as proposed in the current financial year Budget, there is  in fact a decline of 2.13 percent. Instead of getting Rs 700 Crore more from the Centre, the Telangana State is given Rs 924 Crore less.

Principal Secretary (Finance) Sri Ramakrishna Rao recently went to Delhi and brought to the notice of the Central government officials that Telangana State got 8.3 per cent less on the tax share account. He said due to the decrease in the funds allocation, several schemes in the State would face difficulties. Responding to him, the central government officials said that situation is grim and cautioned that the decrease may well go up from 8.3 per cent to 15 percent. When the state government officials were upset that there is a decrease of 8.3 per cent of the funds, the central government officials said that the decrease may further go upto 15 per cent. 15 percent decrease in funds from the Centre would mean a decrease of Rs 2,957 Crore from the funds from the Centre, which are due to the state government. 

There is no match between what the Union Ministers are proclaiming in the Parliament and the ground realities. This is very surprising. If this situation continues, the state’s financial position may turn into a grave situation. It is like a person losing his clothes when in fact he was asking for a morsel of food. The economic situation is in a state uncertainty. The CM has instructed the Principal Secretary to Finance to decrease funds for all the departments in tune with the decrease in funds from the Centre. The CM has also instructed all the departments to reduce expenditure.

 

CM’s letter Union Finance Minister

On Saturday, the CM wrote a letter to union finance minister Smt Nirmala Sitharaman requesting her to release funds to the State as stipulated in the Budget or else declare the facts.