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Centre should practice fiscal federalism, says Telangana IT Minister

Our Bureau Hyderabad | Updated on February 14, 2020 Published on February 14, 2020

‘$5 trillion economy can be achieved when states are given more power’

 

Speaking at a discussion with Tech Mahindra’s CEO, CP Gurnani, on March to 5 Trillion Economy: Reality or ambitious at the 28th Nasscom Technology and Leadership Forum 2020 in Mumbai, Telangana IT and Industries Minister KT Rama Rao said that the $5-trillion economy can be achieved only when the Union government takes bold decisions.

He also stated that when the Union government talks about ‘Team India’, ‘Cooperative Federalism’ it should also practice fiscal federalism.

The Central Government needs to give States more access to the capital and be liberal when it comes to Fiscal Responsibility and Budget Management (FRBM) limits. Only then will the nation develop at a faster pace, he added.

On building infrastructure, he said the Telangana government spent around ₹1.6 lakh crore on capital expenditure during 2014-19 and mentioned about the mega Kaleshwaram project and Mission Bhagiratha.

Talking about inclusive growth, he said, “India cannot only grow in its cities. We have to take care of smaller towns and villages. While cutting edge and emerging technologies can come up in larger cities, the IT industry needs to shift its focus to tier-two cities.”

Rao said the country had to contend with economic slowdown during 2017-18 and 2018-19.

Rao said, “IT, banking, financial services, tourism, and hospitality are the sectors which can be further augmented with a well-planned strategy and the Government of India needs to focus on these sectors where the States can be allowed to play a larger role in tandem with the government.”

Mentioning about Hyderabad Pharma City and Kakatiya Mega Textile Park, the Minister said that the Telangana government has approached the Centre and asked for support in building these projects into world-class parks. He said, “But the Union government did not extend support.”

Published on February 14, 2020
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