Telangana sees fall in grants and revenue receipts from Centre

The 18 per cent cut of funds includes a five per cent cut with regards to Centrally Sponsored Schemes (CSS). Cuts do not bode well for State govt schemes such as Rythu Bandhu, Rythu Bhima.

Published: 02nd August 2019 03:41 AM  |   Last Updated: 02nd August 2019 03:41 AM   |  A+A-

Picture for representational purpose (Express illustrations))

Express News Service

HYDERABAD:  The Central government’s “skinflint” attitude towards Telangana has resulted in financial stress for the TRS government this year. According to sources, the State has received 18 per cent less money — including revenue receipts and grants — in the first quarter of 2018-19, when compared with the first quarter of 2018-19.

The State government had received Rs 6,093 crore from the Centre in the first quarter of 2018-19. This year, the State received only Rs 4,973 crore, a drop of Rs 1,119 crore from the last.  For a government that is implementing welfare programmes such Rythu Bhima, Aasara pensions and Rythu Bandhu, such figures do not bode well. 

The 18 per cent cut of funds includes a five per cent cut with regards to Centrally Sponsored Schemes (CSS). This cut in Central funds is largely because of the decrease in the Central government’s tax collections in the Goods and Services (GST) regime. The State received Rs 3,841 crore in the first quarter of 2018-19 under the State’s share of Central taxes. In the current financial year, the State received Rs 3,622 crore between April and June, a figure that is less by Rs 218 crore which translates to a shortfall of 5 per cent. 

There has been a drastic fall in Central grants with regard to various Centrally Sponsored Schemes (CSS). In the first quarter of 2018-19, the grants received by the State for CSS were Rs 2,252 crore. This year, the State has received only Rs 1,351 crore, a cut of Rs 901 crore. 

Under the NREGS, the State government received Rs 939 crore last year. This year, not even a single rupee has been released under the programme. Finance Commission funds too have not been released this year.

 Last year, the amount received under Finance Commission funds was Rs 537 crore. The State also received Rs 226 crore for disaster management funds last year. But, due to the poor tax collections by the Central government, it did not release any funds for disaster management so far.

No grants in several schemes

Several Central schemes such as the employment guarantee scheme (MNREGS), Per Drop More Crop, NRDWP, Syama Prasad RURBAN Mission and National Rural Livelihood Mission have received no grants at all. Even the Nutrition Programme didn’t get any grants

Cut largely due to Goods and Services regime

The 18 per cent cut of funds from the Centre includes a five per cent cut with regard to Centrally Sponsored Schemes (CSS). The reason for this cut in funds from the Central government is largely because of the decrease in the Central government’s tax collections in the Goods and Services (GST) regime 

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