KCR to seek liberal funding from center

Hyderabad: The fund-strapped Telangana government is looking at the Centre for special grants to the tune of Rs 15,000 crore to implement the flagship programmes and Chief Minister K Chandrasekhar Rao is likely to submit a memorandum to the Prime Minister Narendra Modi in Delhi for funds.

Higher officials in the finance department indicate that they were asked to prepare a draft report seeking grants from the Centre for various sectors.

The CM is leaving for Delhi to participate in the Chief Ministers' conference on the revamping of Planning Commission on December 7. Officials said that apart from giving his views on the Planning Commission revamping, KCR would meet the Prime Minister and Union Finance Minister Arun Jaitly and would submit a memorandum seeking funds.

Finance department sources said the government wants to seek Centre's financial assistance in the sectors like roads, minor irrigation, drinking water, power and some others. The planning department officials of the State government are busy with preparation of the memorandum.

The TRS government is intending to tap the funds from the Centre under various schemes to supplement the State budgetary allocations to various programmes. Apart from the shortage of funds for the schemes, drop in the State revenue has become a cause of concern for the government.

It observed that the revenue from various taxes is not up to the expectations. 'We expected revenue share of about 53 per cent of the combined AP revenue. But the latest figures show that it has stagnated at 47 per cent. This is an alarming situation and we have to put our focus on augmenting the revenue,' said key official of the government.

On the other hand, chances of getting loans more than the stipulated ones from the market are also bleak and unless the Centre gives special permission, the State government could not borrow more amount than specified under the FRBM.

According to some estimates, the major programmes would need Rs 2 lakh crore and if the projects that could be taken up on PPP mode are set aside, the remaining ones need about Rs 1 lakh crore. Unless the Centre's funds supplement it, it would not be possible for the State government to complete them, the official said.

The State government is optimistic that the Centre would provide funds under its schemes meant for development of infrastructure, drinking water facilities and backward areas development and others. 'Centre has some programmes for roads and lakes. We want to make use of them,' officials said.