Central budget disappointing, discriminatory: KCR

‘It will have adverse impact on State’s growth prospects’

Chief Minister K. Chandrasekhar Rao said the Union Budget for 2020-21 presented in Parliament on Saturday was totally disappointing and expressed concern that the budget allocations would have an adverse impact on the growth prospects of Telangana.

He alleged that Centre showed discrimination against Telangana by imposing a cut on the funds due to the State and it was deplorable that the share of Telangana in the Central taxes was reduced and it could result in fund crunch for the ongoing development and welfare schemes in the State.

Mr. Chandrasekhar Rao held a meeting with senior officials at Pragathi Bhavan here on Saturday for over four hours to review the the aspects that would have an impact on the State.

The State’s share in the Central taxes was a constitutional right and Telangana should have got ₹19,718 crore for 2019-20 but in the revised estimates, it was curtailed to ₹15,987 crore, resulting in reduction of funds to the tune of ₹3,731 crore for this fiscal. This had turned the financial plan of the State topsy-turvy, he said. The Centre normally released funds to the States based on the estimates announced in the budget but this year the shortfall of 18.9 percent in the promised funds was an indication of failure in the management of financial affairs of the Centre.

Even in the 2020-21 budget proposals, Telangana suffered losses on two counts. The share of States in Central taxes was brought down from 42 per cent to 41 per cent as recommended by the 15th Finance Commission. Last year, while Telangana had got 2.437 per cent of tax share, in 2020-21, it was reduced to 2.133 per cent, giving it ₹2,381 crore less. “This is clear discrimination and it will impact the development plans of the State,” he said. In 2019-20, Telangana’s share of Central tax had been reduced by ₹3,731 crore. For 2020-21, it proposed ₹16,726 crore and by the time of revised estimates, one would not be sure how much it would be reduced. “There is no relation between what the Centre promised and actual release of funds,” he said.

The Centre did not give clarity even on payment of ₹1,137 crore due under GST compensation to Telangana, he said.

The Centre also imposed a huge cut on allocation for development of cities and this would derail the ongoing urbanisation in the State. In 2019-20, ₹1,037 crore had been allocated for urban development but in 2020-21 it was reduced to ₹889 crore. Funding for urban development were reduced by 14.3 per cent. There was no mention of ₹24,000 crore recommended by NITI Aayog for Mission Bhagiratha and Mission Kakatiya and the Centre did not heed the request of the State for maintenance expenditure for irrigation projects taken up in the State in a big way.

The Centre did not announce any progressive measures to pull the country out of the economic slowdown, and reduced allocations for agriculture, education, health, rural development and other sectors compared to last budget and this would affect the social sector development, he said.

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Printable version | Mar 29, 2020 6:47:27 PM | https://www.thehindu.com/news/cities/Hyderabad/central-budget-disappointing-discriminatory-kcr/article30714923.ece

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