The Telangana Government has alleged that sanctions imposed by the Centre have resulted in the reduction of over ₹40,000 crore in income for the State in the financial year 2022-23 financial year.

With a view to apprising the people of the Centre’s sanctions and how they have resulted in a loss of income to the exchequer, the Telangana Rashtra Samithi government has decided to hold a special session of the Assembly in December.

The TRS and BJP have been engaged in a bitter political fight over the last few months. While KCR floated a national political party, Bharat Rashtra Samithi, to take on the BJP at the Centre, the BJP has trained its guns on the TRS government, with an eye on the 2023 election to the State assembly.

Reduced FRBM limits

Giving a breakup of the “income losses” for the financial year, the Chief Minister said the Union Government has reduced the FRBM (Fiscal Responsibility and Budget Management) promised limits, reducing the State’s ability to raise funds. “From about ₹54,000 crore as indicated at the beginning of the financial year, they pruned it to ₹39,000 crore, causing a dent of ₹15,000 crore to the State’s plans to raise funds,” he said.

The FRBM norms are aimed at ensuring the fiscal discipline of States and the Centre by enforcing a limit on the borrowings that they can raise to meet their budgetary targets.

“Besides, the States that are performing well are eligible to get an additional increase of 0.5 per cent in the FRBM limit. But the Centre has linked it with power reforms, limiting the offer only to the States that implemented reforms in the power sector,” he said.

“The State refused to bring in the reforms as that would cause harm to the farmers in the State. Because of this clause, we are denied the opportunity to raise about Rs 6,000 crore. Besides, it stopped non-budgetary allocations to the tune of ₹20,000 crore,” a Chief Minister’s Office statement alleged.

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