T. Harish Rao, the Finance Minister of Telangana, presented a wish list for the budget during a virtual pre budget meeting.
On the 18th of January, Nirmala Sitharaman, the Union Finance Minister, conducted a virtual pre budget meeting. The meeting was conducted ahead of the Union Budget 2021, which would be presented in the Lok Sabha on the 1st of February.
According to sources, the State Finance Ministry included continuation of the additional borrowing scheme in the new financial year, immediate release of Rs. 723 crores grant under the 15th Finance Commission and Rs. 900 crores for the backward area development fund to Telangana.
The Telangana Rashtra Samithi (TRS) Government also insisted to extend free vaccination programme to all citizens of Telangana along the lines of Bihar.
Telangana State Minister Harish Rao said the special borrowing scheme under which the States are permitted to avail 2 % additional borrowings of the total GSDP (Gross State Domestic Product ) would be a help.
The additional borrowing scheme would help Telangana to maintain the required funds for the purpose of public expenditure. The request came at a time when the State was struggling to meet the financial needs in the wake of the post lockdown due to the Novel Coronavirus.
In regard to the same, Mr. Rao urged the Central Government to extend the additional borrowing of 2 % scheme in the next financial year 2021-2022.
Highlighting the economic situation of Telangana, Mr. Rao said the State had lost Rs. 723 crores due to non implementation of the given recommendations in the current year 2020-2021. He also drew the attention of the Union Minister to the fact that the Indian states were losing their share of funds due to the imposition of cess and surcharges.
T. Harish Rao asked Ms. Sitharaman to scrap the cess and increase Central grants to the states. In addition, in the wish list for the budget, Mr. Rao also asked the Government of India (GoI) to extend 50 % subsidy on the loans taken by women self help groups to all districts.
He also demanded enhancement of the pension to physically challenged people, old age and widows to Rs. 1, 000 from Rs. 200 in the 2021-2022 budget.
State Finance Secretary K. Rama Krishna Rao and others were present with T. Harish Rao during the virtual conference.
Stay tuned for further updates.
