Telangana minister KTR urges the Centre to release pending dues to the state

HYDERABAD: Telangana municipal minister KT Rama Rao has urged the union finance minister Nirmala Sitaraman to release pending dues under finance commission about Rs 1,433 crore which includes the overdue first instalment of grant to million-plus cities Rs 468 crore and the balance second instalment of grant to non-million plus cities Rs 315 crore and the pending statutory grants recommended by the 14^th Finance Commission of Rs 650 crore.
In a letter addressed to the finance minister on Saturday, KTR said the state was denied its rightful grants to urban local bodies recommended by the 14th Finance Commission (2015-20). While the commission recommended an unconditional basic grant of Rs 2,711 crore, the Centre released just Rs 2500 crore. “Though the state had fulfilled all the conditions prescribed to the performance grant of Rs 677 crore, the amount released to the state was only Rs 235 crore i.e shortfall of 441 crore. Thus, the state was denied Rs 650 crore of the statutory grant to urban local bodies though full amount was released to some other states.
He said the 15th finance commission had recommended that the grants amount of Rs 468 crore to million plus cities i.e Hyderabad and Rs 421 crore to non-million plus cities in the state should be released in two equal instalments in June and October, 2020.
“While the million plus cities grant has not been released so far, the non-million plus cities grant was split into four instalments against the recommendation of the finance commission. The first instalment was released only in May 2,020,” the minister said.
KTR said the states are in the forefront fighting the Covid 19 and improving social and civic infrastructure in urban areas. Additional budget provisions matching the Central finance commission were allocated in the state budget 2020-2021. The state has already been facing problem dwindling revenues from the state owned tax revenues, he said.