Union Budget 2019: Centre shatters dreams of Telangana, Andhra Pradesh
Hyderabad: The Union Budget presented on Friday has delivered a big shock to the two Telugu states. To implement the populist schemes and fulfil the promises made to the people during the recent Assembly elections, they were hoping for additional financial aid from the Central government.
Under tax devolutions, Telangana state will get Rs 1,157.69 crore more in the current financial year compared to the previous year. AP will get Rs 2,046.09 crore more compared to the previous year.
The Central government has projected Rs 2,33,079 crore additional funds under tax and non-tax revenue in the current financial year, but it allotted only Rs 47,669 crore more under tax devolutions this time. The Telugu states will have to depend on their own tax revenue and market borrowings.
Under tax devolutions the TS government will get 19,718.57 crore; in the previous year, it got Rs 18,560.88 crore. The Andhra Pradesh government will get Rs 34,833.18 crore whereas it received Rs 32,787.03 crore in the previous year.
The total tax and non-tax revenue the Centre has projected in the current financial year is Rs 19,62,761 crore and under tax devolution it has allotted Rs 8,09,133.02 crore to all states.
In the previous year, the Centre received Rs 17,29,682 crore under tax and non tax revenue but it allotted only Rs 7,61,454.15 crore under tax devolution to all states.
Expecting more fund inflow from the centre, the Telangana state government had presented a vote-on-account budget of Rs 1,82, 017 crore and Andhra Pradesh government allocated Rs 2,26,177.53 crore.
The Centre gave another shock to the twin states by reducing the loan for externally-aided projects. In the current financial year, the Centre has capped the amount at Rs 19,723 crore, which is Rs 23,801 crore less than what was given last year.
The fate of projects in TS and AP depends on the proposals that will be sent by other states. The Centre has increased the externally-aided project grants to states to Rs 4,500 crore in the current financial year.
For Centrally sponsored schemes and Central sector schemes, too, the Union government has increased the allotments marginally.
