Telangana had registered a growth rate of 15.3 per cent in its State revenues during the current fiscal, despite the Central government reducing allocations by 12.9 per cent this year under Centrally Sponsored Schemes (CSS) and other schemes compared to last fiscal. In terms of State own tax revenues, Telangana has topped the national chart among the States with 11.5 per cent growth rate.

The marathon meeting of the State Cabinet chaired by Chief Minister K Chandrashekhar Rao at Pragati Bhavan here on Thursday, lasted for more than six hours. The Cabinet discussed at length on the State’s financial condition and mobilisation of resources in the wake of decline in allocations from the Centre.

Chief Minister Chandrashekhar Rao opined that the State’s growth rate was stunted due to the lopsided policies adopted by the union government. “If the Central government achieved the progress equal to Telangana state, the State’s GSDP would have increased by another Rs 3 lakh crores and the total would be Rs 14.50 lakh crores.

The officials also informed that there was inordinate delay in release of funds by the union government to the States due to newly introduced Single Nodal Account (SNA) system. Further, they pointed out that delay in approvals for market borrowings as per FRBM (Fiscal Responsibility and Budget Management) and imposition of cuts on the same, was also delaying the mobilisation of resources for the State which in turn hampering the growth rate. 

The State revenues would have been increased further and register a growth rate of 22 percent if there were no cuts in the FRBM limits, the officials informed the


As against Rs 1.84 lakh crore spent by the State government, the Centre had contributed only RS 5,200 crore under various CSS which is mere three per cent of Telangana’s total expenditure. Similarly, the union government released only Rs 47,312 crore to Telangana under CSS over the last eight years. This is less than the amount of Rs 58,024 crores disbursed as crop investment assistance to farmers by the State government under under the Rythu Bandhu scheme alone.

The Centre’s lackadaisical attitude towards Telangana continues despite the State setting a record of sorts in terms of income growth by three times since the State formation. While the State revenues stood at Rs 62,000 crore in the first year of its formation 2014-15, it has increased to Rs 1.84 lakh crore last fiscal. Further, Telangana contributed five per cent of the country’s revenue despite having only 2.5 per cent of the total country’s population.

On the occasion, Principal Secretary for IT and Industries Jayesh Ranjan informed the Cabinet that 1.55 lakh new jobs were created in IT sector last year, making Telangana the largest job creator in the country. The IT sector was developed significantly in Telangana with the new initiatives, incentives, investor-friendly policies, infrastructure creation, maintenance of law and order, uninterrupted quality power supply and availability of human resources.

The Chief Minister expressed his happiness on the rapid growth of IT sector in the State and appreciated the efforts of IT Minister KT Rama Rao, IT Secretary Jayesh Ranjan and other officials in this regard.

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