Etala Criticises Reduced Central Tax Allocation to Telangana

Instead of giving incentives for checking population growth and plugging leakages, the continuous disincentivising of the state was not a good move and the Finance Commission must seriously ponder over it, Rajendar told Deccan Chronicle.

Rajendar, first finance minister for the state in the BRS government, had pointed out that undivided AP used to get 2.9 per cent in Central taxes. After Telangana was formed, the 14^th Finance Commission reduced the state share to 2.43 per cent as the per capita income had increased since 2014. The 15^th Finance Commission further reduced it to 2.1 per cent on the same grounds. If the 16h Finance Commission followed the same formula, it would be a big blow to Telangana, he said.

Rajendar strongly disputed the stand of the Finance Commission that devolution of funds was based on the economic disparities of the states. He said a number of regions and districts within Telangana also had low per capita income levels. He said the per capita income of Komaram Bheem district stood at 1. 81 lakh, below the national average of ₹1.83 lakh, though the figure for Telangana overall stood at `3.47 lakh.

He pointed out that around 20 lakh people from different states including 16.8 lakh from Uttar Pradesh and Bihar had settled down in Hyderabad for employment. “Instead of giving incentives for providing employment to people from backward states, it is highly objectionable to punish Telangana in devolution of Central funds,” he said, reflecting the contention of Opposition-ruled states, especially from South India.

Rajendar also urged the 16^th Finance Commission to come out with some mechanism to check huge violations in budgetary allocations and actual spending for various schemes, programmes etc. He pointed out the former chief minister K. Chandrasekhar Rao never honoured the budgetary allocations, and gave the example of how OBCs were assured funds and but were not given anything.