Etala blames Centre for dip in revenues
Hyderabad, March 11 (INN): Finance Minister Etala Rajender has blamed the Central Government for resource shortfall of Rs 20,227 crore in 2014-15.
Presenting the budget for the financial year 2015-16 in the Telangana Legislative Assembly on Wednesday, Etala said that the estimated of central grants included in the 2014-15 State Budget were based on past trends and the provisions made in the Central Budget towards aggregate assistance to States. But there has been considerable reduction in the receipt of transfers from the Centre. As compared with the Central Plan assistance of Rs 11,781 crore projected in the State budget, the amount received till the end of February 2015 is only Rs 4,147 crore, indicating a shortfall of Rs 7,634 crore or close to 65 per cent of the budgeted amount. Similar is the case with non-plan grants from the Centre. As compared with the non-plan grants of Rs 9,939 crore budgeted in 2014-15, the amount received till the end of February, is only Rs 1,346 crore. The shortfall in the receipt of non-plan grants is over 86 percent of the Budget Estimates.
"Our government requested Government of India for raising an amount of Rs 4,000 crore as additional borrowings in relaxation of the borrowing limit under the Fiscal Responsibility and Budget Management (FRBM) Act. The Government of India has so far not communicated any decision about such relaxation. Thus, the shortfall in Central grants under plan and non-receipt of special assistance, CST compensation and dues under CAMPA under non-plan combined with the non-relaxation of borrowing limits has resulted in resource shortfall of Rs 20,227 crore, which is beyond the control of the State Government. Added to this, the allocation of plan grants to the State was communicated as late as February 2015," he said.
Etala said that the State Government largely remained on track in respect of the Budget Estimates of revenue but for the steep shortfall in the grants from the Centre. The collection of own tax (SOTR) and non-tax revenue (SNTR) is more or less on track as compared with the estimates presented in the 2014-15 budget with the exception of collections under VAT and proceeds from land regularisation. VAT collections remained subdued because of general stagnation in economic growth, he said.
News Posted: 11 March, 2015
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