Bhatti urges to Centre on Telangana's debt burden
Hyderabad: Deputy Chief Minister Mallu Bhatti Vikramarka urged Union finance minister Nirmala Sitharaman to address several pressing financial concerns faced by the state. During a meeting in Delhi on Saturday, Bhatti in presented a report on the state’s financial situation and requested the Union minister's intervention in various matters, particularly those related to Centrally-sponsored schemes and the aftermath of the state's bifurcation.
Speaking to media personnel after the meeting, Bhatti stressed the need for the Centre’s assistance in managing the state's financial burden, which has been exacerbated by non-budgetary loans taken by the previous BRS government. "The previous government borrowed Rs 31,795 crore at high interest rates, placing a heavy debt burden on the state exchequer. I have requested that these loans be rescheduled to provide some relief and reduce the interest rates, as the interest payments have now surpassed the state’s salary expenditures," Bhatti stated.
Bhatti also highlighted the issue of funds related to centrally sponsored schemes (CSS) that were erroneously allocated to Andhra Pradesh during the 2014-15 financial year, the first year after Telangana's formation. He urged Sitharaman to correct this mistake and release Rs 495.20 crore to Telangana.
"Ensuring that Telangana receives its rightful share of funds is crucial for the equitable financial management of ongoing and planned CSS initiatives, directly impacting public welfare and development," Bhatti added.
Bhatti raised the issue of Rs 1,800 crore in grants that Telangana was entitled to under Section 94(2) of the AP Reorganisation Act, meant for the development of backward areas. These funds, he noted, had not been received despite fulfilling all requisite conditions and submitting utilisation certificates. Bhatti called for the immediate release of these funds, stressing their importance in reducing regional disparities and promoting inclusive growth in the state.
Another critical point of discussion was the Rs 455.76 crore owed to Telangana by AP from the Andhra Pradesh Building and Other Construction Workers Welfare Board (APBOCWWB), and Rs 9.15 crore from the AP Labour Welfare Fund. Bhatti urged Nirmala to ensure the swift transfer of these funds, which are vital for continuing welfare activities for labour and construction workers in Telangana.
Bhatti addressed the financial strain caused by off-budget borrowings (OBB) undertaken by the previous BRS government. He requested that these loans, raised through special purpose vehicles (SPVs) for crucial irrigation and drinking water projects, be restructured to align with Telangana’s financial capacity.
Bhatti requested a review of the allocation of liabilities between AP and Telangana, particularly concerning the AP Power Finance Corporation and the settlement of power dues between the two states, which total Rs 6,756.92 crore. He emphasised the need for a comprehensive settlement of all power-related disputes to maintain good inter-state relations and ensure fair financial dealings.
Bhatti called for the augmentation of the existing IPS cadre in Telangana based on the state’s territorial requirements rather than just the population ratio. leading to the creation of only 61 cadre IPS posts. He stressed the importance of maintaining law and order, especially in light of the state's challenging topography and past experiences with left-wing extremism.
Sitharaman assured Bhatti that a meeting would be arranged with state government officials to address these issues, and appropriate action would be taken to provide the necessary assistance and relief to Telangana.