T. Harish Rao, Minister of Finance and Health, Responds to Union Minister Kishan Reddy’s Power Point Presentation
In a power point presentation filled with baseless claims and falsehoods, Kishan Reddy, the Union Minister, displayed his frustration by resorting to blatant lies. His repetitive use of unfounded statements, previously propagated by Amit Shah, only highlights his desperation.
One of his claims revolves around personal loans issued by banks. The Central Government, represented by Kishan Reddy, should be ashamed of taking credit for loans extended by banks to individuals. The distribution of taxes is a constitutional right of states, and it is important to note that the distribution is not part of the Consolidated Fund of India. Despite the Finance Commission’s recommendation of a 41% share of central taxes for all states, they only receive approximately 30% due to the inclusion of cesses and surcharges, which do not contribute to the shared tax pool. Telangana’s share in tax distribution has decreased from 2.893% in 2014-15 to 2.102% in 2021-22.
Moreover, Kishan Reddy falsely claimed that 100% of houses in Telangana have access to tap water, with the central government contributing Rs. 1588.08 crores through Mission Bhagiratha. The reality is that the total amount provided by the Centre is insufficient even for maintaining Mission Bhagiratha, which has incurred expenses of Rs. 36,000 crores. Can Kishan Reddy provide any evidence to support his misleading statements?
Kishan Reddy also attempted to highlight the special treatment provided by the Reserve Bank of India (RBI) through the Ways and Means facility. It is essential to clarify that this facility, which assists states in balancing revenue and expenditure, is available to all states, including Telangana. The State Government of Telangana, like any other state, is subject to an interest rate of approximately 6% on these advances. Kishan Reddy’s assertion that the RBI is extending special treatment is baseless.
Additionally, Kishan Reddy mentioned the collection of 34,737 crores as GST compensation cess from Telangana between 2017-18 and 2022-23. However, Telangana has only received Rs. 8,927 crores as compensation, while the GST cess collected from the state amounted to Rs. 10,285 crores in the first two years of GST implementation. It is important to clarify that the compensation funds do not come from the Consolidated Fund of India but from the GST Compensation Fund. Therefore, the claim made by the central government regarding GST compensation payments is incorrect, as it is Telangana’s rightful due.
Under Section 94(2) of the State Reorganization Act, an amount of Rs. 2,250 crores was allocated for the development of backward districts over a span of five years. However, no funds have been released for the years 2019-20, 2020-21, and 2022-23, despite the Act’s purpose of supporting the development of backward areas. Even though the central team expressed satisfaction with Telangana’s progress during their visit, an unjustified withholding of Rs. 1,350 crores occurred for these three years. Minister Kishan Reddy must address this matter.
Kishan Reddy tried to assert that the funds allocated to national highways come from road and infrastructure cesses, without burdening the central government further. However, it should be noted that the funds allocated to Telangana for national highways do not come as a result of Kishan Reddy’s generosity, but rather from the designated road and infrastructure cesses. There is no additional burden on the central government in this regard.
It is quite absurd for Kishan Reddy to claim that the central government has spent Rs. 1.58 lakh crores on the procurement of food grains from Telangana. In reality, a significant portion of these costs is recovered by the central government through the sale of these food grains under the Public Distribution System (PDS). Does Kishan Reddy conveniently forget that Union Minister Piyush Goyal once ridiculed the people of Telangana by offering them free advice to consume broken rice?
Regarding the fertilizer subsidy, Kishan Reddy’s statement that they are providing Rs. 33,000 crores raises questions. Wasn’t this subsidy already being provided by previous governments? It is important to clarify that this subsidy is not directly benefiting the farmers of Telangana but rather the fertilizer companies located in the state. How can a subsidy to a fertilizer company be considered a subsidy for Telangana farmers?
Furthermore, Kishan Reddy’s insinuation that the Reserve Bank of India (RBI) is not an independent institution is baseless. The RBI operates independently and provides financial assistance, including overdrafts, to all states as needed.
Kishan Reddy’s attempt to highlight the central government’s involvement in granting loans to citizens of Telangana is nothing more than self-aggrandizement. Banks provide loans based on established rules and regulations, and the central government’s role is not unique or exceptional in this process.
Kishan Reddy’s claims and exaggerations only serve to highlight his lack of substance and credibility. It is imperative that he explains why the guarantees outlined in the bifurcation Act have not been fulfilled. Additionally, he should address the unanswered questions surrounding the Bayyaram steel factory and the status of the Kazipet Coach Factory.
Rather than making empty statements, Kishan Reddy should focus on delivering the promised funds for the BB Nagar AIIMS. It is disheartening to witness the lack of progress and the indifferent attitude of the central government towards the healthcare needs of Telangana. While the Ayushman Bharat scheme may provide nominal support, the Arogya Shri initiative undertaken by the state government offers substantial benefits to the people.
Repeated requests and letters have been submitted to the central government regarding the pending dues owed to the state, but there has been no satisfactory response from Kishan Reddy. It seems futile to expect any action from him.
The state of Telangana has been persistently raising concerns about the due compensation amounting to Rs. 723 crores, which the Finance Commission has been requesting for the past three years. Similarly, an amount of Rs. 495 crores, mistakenly deposited in Andhra Pradesh’s account, has been pending for nine years without any resolution.
Despite Niti Aayog’s recommendation to allocate Rs. 24,205 crores for Mission Bhagiratha and Mission Kakatiya, the central government has failed to respond. This apathy towards crucial developmental projects raises serious questions about the central government’s commitment to the welfare of Telangana.
The state has incurred losses amounting to Rs. 30,000 crores due to the provision of electricity meters for bore wells, and an additional loss of Rs. 15,033 crores resulted from changes in the Fiscal Responsibility and Budget Management (FRBM) regulations. If the share of 41% in taxes had been properly implemented, the state would have received an additional Rs. 33,712 crores in arrears.
Kishan Reddy must provide a clear explanation as to why the central government is withholding Rs. 1 lakh 43 thousand crore rupees from Telangana. It is crucial that he focuses on securing these funds for the state before addressing any other matters.
Moreover, it is imperative to compare the support and resources provided to Telangana with those allocated to other states, such as Gujarat. Only by presenting a comprehensive picture can we truly evaluate the fairness and equity of the central government’s actions.
Today, we have addressed only a fraction of the false claims made by Kishan Reddy. Rest assured, a detailed power point presentation, backed by concrete evidence, will soon expose the web of lies woven by Kishan Reddy. His den of deceit will be fully exposed.
