Hyderabad: The Telangana state’s Minister of Finance T Harish Rao once again wrote a letter to Central Finance Minister Nirmala Sitharaman citing earlier representations seeking immediate release of grants to the state.
Rao wrote in his letter to release the funds allocated under the Andhra Pradesh Division Act 94(2) for the development of the backward areas, two year’s arrears of Rs.900 cr of the allocated funds, to extend the grants for another 5 years, releasing Rs.24,205 cr as recommended by Niti Ayog.
The 14th Finance Commission recommended to release 817.61 cr for the local institutions: 315.32 cr for the rural institutions and Rs.502.29 cr for the urban institutions which was rejected by the Central Government in spite of the state fulfilling all the conditions.
In comparison to 2019-20, the state’s tax share has been decreased in 2020-21 which prompted the 15th Finance Commission to recommend Rs.723 cr as special grant to the state.
Rao also reminded the Central Finance Minister that there is no precedence of the Central Government rejecting the Finance Commission’s recommendations.
The Telangana Finance Minister also sought the immediate release of pending Rs.210 IGST funds to the state.
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