HYDERABAD: Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka on Friday asked Union Finance Minister Nirmala Sitaraman to give fair share in Centrally Sponsored Schemes (CSS) to Telangana.
Addressing a pre-Budget consultation meeting at Jaisalmer in Rajasthan, he wanted Sitaraman to communicate net borrowing ceilings alongside tax devolution figures during the presentation enabling states to meet their development goals.
“Removal of conditionalities on borrowings will allow greater fiscal space,” he added.
Vikramarka said that despite being among the fastest-growing states and contributing significantly to the national economy, Telangana has been underfunded under CSS. Telangana requests allocations based on population ratio, disbursed promptly without bias, he said.
Greater flexibility in CSS implementation to address regional-specific needs was also necessary, he said.
The deputy chief minister said that the commitments made by the Centre under AP Reorganisation Act, 2014 remained unfulfilled. “Release pending grants of Rs 1,800 crore under Section 94(2). The state is also seeking an extension of Rs 450 crore annual grant for five more years to support backward districts,” he said.
Vikramarka also sought funds for critical infrastructure such as industrial parks, irrigation projects and highway networks. Extending the Smart Cities Mission to emerging urban centres was also crucial, he said.
‘Increased allocations needed to tackle rural job distress’
The deputy CM suggested greater flexibility to use MGNREGA funds for innovative public works that generate employment while creating durable assets. Increased allocations are essential to tackle rural job distress, he said.
While seeking funds from RBI to revive sick MSME units in the state, he proposed establishment of a Technology Upgradation Fund for MSMEs.
Vikramarka requested access to green financing mechanisms for sustainable infrastructure projects. Dedicated Union funds to strengthen climate resilience initiatives were also needed, he said.
He also sought simplification of tax slabs and reduction of corporate tax rates to enhance ease of doing business.
Vikramarka also sought enhanced special assistance to states for capital expenditure with a Rs 2.5 lakh crore annual allocation.