AP holds on to State’s share of Central funds

₹169.46 crore of TS share ₹664.67 crore was released

The stalemate over the release of Telangana’s share of Centrally-sponsored schemes amounting to close to ₹ 500 crore is continuing.

The Central government has released 55 sanction orders for a total amount of ₹ 1,630 crore under the Centrally- sponsored schemes and the amount was received by neighbouring Andhra Pradesh after bifurcation. Of the total amount received, the neighbouring State has transferred ₹169.46 crore as Telangana’s share so far.

Population ratio

The State government, in a letter addressed to the Principal Accountant General in October 2017, insisted that the sanctioned amount between the two successor States should be shared in population ratio (58:42) unless the sanction indicates that the amount is specifically meant for a particular region.

Accordingly, Telangana's share of the total amount — ₹1,630.53 crore had been calculated to be ₹664.67 crore of which only ₹169.46 crore had been released leaving a balance of ₹495.21 crore.

Unequal division

Of the total amount, sanctions to Telangana from the Union Health Ministry were pegged at ₹ 127.67 crore, Agriculture – ₹87.41 crore, Human Resource Development – ₹367.96 crore and Rural Development – ₹65.12 crore, in addition to minor amounts related to Housing, Environment & Forests and Food Processing and Industries.

The Andhra Pradesh government had transferred ₹26.01 crore relating to Agriculture Ministry and ₹ 143.45 crore of HRD Ministry so far.

The issue figured in the high-level meeting convened by the Union Home Ministry to review the status of implementation of the provisions under AP Reorganisation Act 2014 last month where the Telangana officials insisted on a resolution to the impasse.

Competent authority

The representatives of AP contended that both the States had to reconcile the matter, but the Telangana government contended that the reconciliation was already completed by the competent authority, the Accountant General.

Taking note of the Telangana’s contention, the Department of Economic Affairs of the Union Government, according to the minutes of the meeting, informed that the RBI had been brought on board to resolve the issue. The Union officials suggested that concerned Ministries should also be consulted in the apportionment process as each scheme has separate allocation criteria.

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Printable version | May 26, 2020 5:49:33 PM |

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