HYDERABAD: The State Cabinet, which met here on Thursday expressed serious displeasure over the “incoherent” policies of the Central government, which were “badly affecting” the economic growth of the State.
“There is an abnormal delay in the transfer of Central funds to the State due to the new system of Single Nodal Account (SNA) being implemented by the Centre,” it was stated in the five-hour long Cabinet meeting, chaired by Chief Minister K Chandrasekhar Rao.
The main focus of the Cabinet meeting was on mobilising additional financial resources, in the wake of Centre’s cut in the FRBM limit and others. However, there was no mention in the official release from the Chief Minister’s Office (CMO) on the plans of the State government to mobilise additional resources.
The Cabinet voiced that the State could not achieve much growth owing to the Centre’s polices.
“If the Central government’s performance too was good, then the State’ Gross State Domestic Product (GSDP) would be Rs 3 lakh crore higher than the present Rs 11.50 lakh crore. The GSDP of the State might have touched Rs 14.5 lakh crore, if the Centre’s policies are sound,” the Chief Minister opined.
“With just 2.5 per cent of the country’s population, Telangana contributed five per cent income to the nation. The State stood in first place in the county with 11.5 per cent growth in State’s own revenues,” Rao said.
Finance officials informed the Chief Minister that the State registered a growth rate of 15.3 per cent this financial year, despite the fact that the Central funds to the State had decreased by 12.9 per cent.
Cut in market borrowings
The State Cabinet also expressed displeasure over the cut in market borrowings under the Fiscal Responsibility and Budget Management Act (FRBM). If there were no cuts in the FRBM loan limit, then the State would have registered 22 per cent growth, the Cabinet felt.
The Cabinet noted that the State received only Rs 47,312 crore in the last eight years under Centrally Sponsored Schemes (CSS). But, the State disbursed Rs 58,024 crore in just four years under Rythu Bandhu, the officials explained.
The State government’s expenditure was Rs 1.84 lakh crore in 2021-22 financial year. But, the State received a mere Rs 5,200 crore under CSS in 2021-22. “The CSS funds are just three per cent of the total expenditure of the State,” officials said. They also recalled that the State’s revenues witnessed a three-fold increase from Rs 62,000 crore in 2014-15 to Rs 1.84 lakh crore in 2021-22.
No special session
The State Cabinet decided not to convene a special session of the Legislature on August 21, as part of Swatantra Bharata Vajrotsavalu. Several MLAs told the Chief Minister that August 21 is the last auspicious day in this season, and a large number of marriages would take place on the same day. Thus, Rao decided not to convene the special Legislature session.
Committee on houses
The Cabinet constituted a committee, which will submit a report within 15 days, on the problems being faced by the people in constructing houses in Grama Kanthams.
Key cabinet decisions