Nation Politics 06 Nov 2019 Centre owes Telangan ...

Centre owes Telangana State lot more: T Harish Rao

Published Nov 6, 2019, 2:09 am IST
Updated Nov 6, 2019, 2:09 am IST
Telangana state had received only Rs 1,652 crore, and Rs 2,812 crore remained outstanding.
T Harish Rao
 T Harish Rao

Hyderabad: Finance minister T. Harish Rao on Tuesday brought to the notice of Union finance minister Nirmala Sitharaman that contrary to Centre’s projections, it owed a lot more to the by way of GST collections and it was time the state gets its rightful share of tax dues.

In a letter addressed to Ms Sitharaman, Mr Harish Rao said that as against its share of Rs 4,464 crore, Telangana state  had received only Rs 1,652 crore, and Rs 2,812 crore remained outstanding.


He said that if takes into consideration the observations of Comptroller and Auditor General (CAG) and recommendations of the Finance Commission, Telangana state’s share of IGST stood at Rs 4,464 crore.

Mr Harish Rao in the letter that “from the balance of Rs 1,76,688 crore, only Rs 67,998 crore was distributed to states based on the devolution formula. As a result, Telangana state received Rs 1,652 crore as its share in tax devolution is 2.437 per cent.”

He explained that as per CAG, the states’ share in IGST was 50 per cent, which translated to Rs 88,344 crore and not Rs 67,998 crore that the Centre has disbursed.

He pointed out that based on the ad-hoc settlement procedure, where Telangana state’s share is 4.03 per cent, it is entitled to receive Rs 3,560 crore.

Mr Harish Rao pointed out in the letter to Ms Sitharaman that as per the recommendations of the 14th Finance Comm-ission, the Centre should devolve 42 per cent out of its 50 per cent share in IGST to the States.

“Accordingly, Rs 37,104 crore of Rs 88,344 crore should be devolved to the States where Telangana state’s share works out to Rs 904 crore (2.437 per cent). Hence, the state’s share in IGST is Rs 4,464 crore and not Rs 1,652 crore,” he added.

Mr Harish Rao said there was a shortfall of revenue of Rs 2,812 crore to the state, which did not receive any compensation in 2017-18 and 2018-19.

Location: India, Telangana, Hyderabad