NAVEENA GHANATE
Hyderabad
Finance Minister T. Harish Rao said that Union Minister Kishan Reddy must provide a clear explanation on why the Centre is withholding Rs 1,430 billion due to Telangana. He said that it is crucial that Kishan focuses on securing these funds for the state before addressing any other matter.
Harish said that Union Minister Kishan Reddy displays a lack of focus and is spreading confusion. He said in a Powerpoint presentation filled with baseless claims and falsehoods, Kishan displayed his frustration by telling blatant lies. His repetitive use of unfounded statements, earlier mentioned by Amit Shah, highlights his desperation, Harish said.
One of his claims revolves around personal loans given by banks. The Centre represented by Kishan Reddy, should be ashamed of taking credit for loans extended by banks to individuals. The distribution of taxes is a constitutional right of states and it is important to note that the distribution is not part of the Consolidated Fund of India, Harish said.
He said that despite the Finance Commission’s recommendation of a 41% share of Central taxes for all states we receive only approximately 30% due to the inclusion of cesses and surcharges, which do not contribute to the shared tax pool. Telangana’s share in tax distribution has decreased from 2.893% in 2014-15 to 2.102% in 2021-22.
Harish said that Kishan falsely claimed that 100% of houses in Telangana have access to tap water, with the Centre contributing Rs 1,588.08 crore through Mission Bhagiratha. The reality is that the amount provided by the Centre was inadequate even for maintaining Mission Bhagiratha, which involved an outlay of Rs 36,000 crore.
Harish said Kishan also attempted to highlight the special treatment provided by the RBI through the Ways and Means facility. It is essential to clarify that this facility, which assists states in balancing revenue and expenditure, is available to all states, including Telangana.
The Government of Telangana, like any other state, is subject to an interest rate of approximately 6% on these advances. Kishan’s assertion that the RBI is extending special treatment is baseless, he added.
Harish said additionally, Kishan mentioned the collection of Rs 34,737 crores as GST compensation cess from Telangana between 2017-18 and 2022-23. However, Telangana has received only Rs 8,927 crore as compensation, while the GST cess collected from the state amounted to Rs 10,285 crore in the first two years of GST.
It is important to clarify that the compensation funds do not come from the Consolidated Fund of India but from the GST Compensation Fund. Therefore, the claim made by the Centre regarding GST compensation payments is wrong, as it is Telangana’s rightful share.
Under Section 94(2) of the State Reorganization Act, an amount of Rs 2,250 crore was allocated for the development of backward districts over five years. However, no funds were released for the years 2019-20, 2020-21 and 2022-23, despite the Act’s purpose of supporting the development of backward areas. Even though the Central team expressed satisfaction with Telangana’s progress during their visit, an unjustified withholding of Rs 1,350 crore occurred in these three years. Kishan must address this matter, Harish said.
Kishan tried to assert that the funds allocated to NHs come from road and infrastructure cesses, without burdening the Centre further. However, it should be noted that the funds allocated to Telangana for NHs do not come as a result of Kishan’s generosity, but from designated road and infrastructure cesses. There is no additional burden on the Centre regarding this.
It is quite absurd for Kishan to claim that the Centre spent Rs 1580 billion on procuring food grain from Telangana. In reality, a significant portion of these costs is recovered by the Centre through the sale of food grains through the PDS. Did Kishan forget that Union Minister Piyush Goyal once mocked the people of Telangana by offering them free advice on how to consume broken rice, Harish said.
Regarding fertilizer subsidy Kishan’s statement that the Centre is providing Rs 33,000 crore raises many questions. Wasn’t this subsidy already being provided by previous governments? It is important to clarify that this subsidy is not directly benefiting the farmers of Telangana but rather fertilizer companies located in the state. How can a subsidy to a fertilizer company be considered a subsidy for Telangana farmers?
Kishan’s insinuation that the RBI is not an independent institution is baseless. The RBI operates independently and provides financial assistance, including overdrafts, to all states as needed.
Kishan’s attempt to highlight the Centre’s involvement in granting loans to the people of Telangana is nothing more than self-aggrandisement. Banks provide loans based on established rules and the Centre’s role is not unique in this process.
Kishan’s claims and exaggerations only serve to highlight his lack of substance and credibility. It is imperative that he explains why the guarantees outlined in the Bifurcation Act have not been fulfilled. He should also address the unanswered questions surrounding the Bayyaram steel factory and the status of the Kazipet Coach Factory.
Rather than making empty statements, Kishan should focus on delivering the promised funds for the BB Nagar AIIMS. It is disheartening to witness the lack of progress and the indifferent attitude of the Centre towards the healthcare needs of Telangana. While the Ayushman Bharat scheme may provide nominal support, the Arogya Shri initiative undertaken by the state government offers substantial benefits to the people, Harish said.
He said that many requests have been made to the Centre regarding dues owed to the state, but there has been no response from Kishan.
The state of Telangana has been persistently raising concerns about the due compensation amounting to Rs 723 crore, which the Finance Commission has been requesting for the past three years. Similarly, an amount of Rs 495 crore, mistakenly deposited in Andhra Pradesh’s account, has been pending for nine years, he said.
Despite Niti Aayog’s recommendation to allot Rs 24,205 crore for Mission Bhagiratha and Mission Kakatiya, the Centre failed to respond. This apathy towards crucial developmental projects raises serious questions about the Centre’s commitment to Telangana, Harish said.
The state suffered losses of Rs 30,000 crore due to the condition that electricity meters must be fitted on bore wells, and an additional loss of Rs 15,033 crore resulted from changes in the Fiscal Responsibility and Budget Management (FRBM) regulations. If the share of 41% in taxes had been properly implemented, the state would have received an additional Rs 33,712 crore in arrears, he said.
It is imperative to compare the resources provided to Telangana with those allocated to other states like Gujarat. Only by presenting a comprehensive picture can we truly evaluate the fairness of the Centre’s actions, he said.
“Today, we have addressed only a fraction of the false claims made by Kishan. A detailed powerpoint presentation, backed by concrete evidence, will soon expose his web of lies,” Harish said.
