In a significant development, Union Minister G. Kishan Reddy has sent a letter to Telangana Chief Minister K. Chandrashekar Rao, urging the release of a white paper on the state’s financial condition ahead of the upcoming budget sessions. The request highlights concerns regarding the economic challenges that Telangana faces, suggesting that a comprehensive assessment is necessary for transparency and accountability.
Reddy emphasized that the central government has allocated approximately ₹12 lakh crore to Telangana over the past twelve years to aid its development. He criticized the state government for its reliance on loans to implement essential welfare programs, including salaries for employees and support for farmers. This dependency has raised alarms about the financial health of the state, leading to calls for a thorough review of its fiscal status.
As part of his letter, Reddy pointed out that under the Special Assistance to States for Capital Investment (SASCI) scheme, the central government has provided over ₹10,000 crore in interest-free loans to Telangana. He expressed frustration over the state government’s failure to fulfill the 420 promises made to the electorate during the last assembly elections, accusing them of diverting attention from the empty state treasury.
The Union Minister’s remarks reflect growing tensions between the central and state governments, particularly regarding the management of funds and promises made to the people of Telangana. Reddy recalled that the Congress party had made significant commitments to the people, which were pivotal in securing their electoral support. However, he noted that the Chief Minister’s government has since struggled to deliver on these promises, raising questions about fiscal responsibility and governance.
In his letter, Reddy detailed the extensive financial support provided by the central government, including around ₹2.5 lakh crore in tax revenue shares, substantial investments in infrastructure such as road and railway projects, and financial assistance for various welfare schemes. He highlighted that Telangana has benefited significantly from these allocations, which are crucial for the state’s development and economic stability.
Moreover, he pointed out that the central government has paid nearly ₹2 lakh crore in minimum support prices for agricultural products, including rice and cotton, directly benefiting Telangana farmers. The letter underscores the central government’s commitment to supporting the state while also calling for greater accountability from the state government regarding its financial management.
Reddy’s call for a white paper is seen as an attempt to bring the state’s financial issues to light, especially in the context of rising debt and fiscal mismanagement. He urged the state government to present a clear picture of its financial health to the public, emphasizing the need for transparency and proactive governance.
As the budget sessions are set to commence on March 16, 2023, the onus is on the Telangana government to respond to these demands and provide clarity on its financial situation. The outcome of this request may significantly influence public perception and political dynamics in the state as it grapples with its economic challenges.
