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Telangana to lose Rs 6,000 cr in grants over next 5 yrs
Telangana to lose Rs 6,000 cr in grants over next 5 yrs
- CM KCR is reportedly much concerned about the shocker; No Covid fund too
- Plea to Centre not to cut taxes devolution from 2.47% to 2.1% flatly ignored
- The quantum of funds released to all States may be huge in the next five years when compared to the 14th Finance Commission but reducing the devolution to 2.10 per cent would badly affect the T State,” officials observe
Hyderabad: The State government is worried it may miss out on nearly Rs 6,000 crore grants under 15th Finance Commission in the next five years (2021-2025) and Chief Minister K Chandrashekar Rao is said to be concerned about it. The government also finds no relief in the budget to tide over the precarious financial crisis that arose out of the Corona pandemic.
The TS government has been demanding that the Centre not reduce the devolution of taxes from 2.47 per cent to 2.1 per cent as recommended by the Commission recently. Finance Secretary K Ramakrishna Rao briefed the outcome of the budget to the Chief Secretary Somesh Kumar soon after the budget presentation was over in the Lok Sabha.
The officials analysed the budget outlay and felt that Telangana would be deprived of the grants to be released as per the Finance Commission recommendations in the coming years. "The government has made several pleas to the Centre to continue the devolution of funds to the T state at 2.47 per cent and scrap the Commission's recommendation of 2.10 per cent. The fresh recommendation which comes into force from 2021-22 financial year would leave Telangana in dire problem of funds crisis as the State would lose nearly Rs 1,500 crore every year."
The State was receiving Rs 16,700 crore per year as grants under the 14th Finance Commission recommendation. "The quantum of funds released to all States may be huge in the next five years when compared to the 14th Finance Commission but reducing the devolution to 2.10 per cent would badly affect the T State," officials observed. They Chief Minister K Chandrashekhar Rao was serious about this particular issue when the Chief Secretary briefed the CM about the implication of new Finance Commission recommendations.
The government was also expecting a 'covid fund' in the new budget. As there is no relief, the State would have to hunt for funds on its own in the new financial year.
