Lift economic sanctions imposed against State, KCR tells Centre

Chief Minister accuses Centre of discriminating against Telangana 

Accusing the Central Government of “discriminating” against progressive States like Telangana, Chief Minister K. Chandrasekhar Rao has demanded that the Centre immediately lift the economic sanctions imposed on the States and stop further violation of the rights enshrined to them in the Constitution of India.

The Chief Minister alleged that the present government at the Centre was basing its governance on the “conspiratorial and frivolous doctrine” of Strong Centre-Weak States. And therefore, the violation of rights of the States reached a peak under this government. “The present government is conspiring to weaken the States financially. It is shifting taxes in the form of cess to evade constitutionally due share of the States in the taxes levied by the Centre,” he said.

The Chief Minister vented his ire against the Narendra Modi-led BJP Government during his address at the official Telangana Formation Day celebrations here on Thursday in the backdrop of the State not being permitted to raise market borrowings to meet its financial requirements. The Chief Minister was particularly critical of the Centre for imposing various kinds of sanctions arbitrarily undermining the economic freedom of the States.

The Centre, which wanted the States to abide by the provisions of the Fiscal Responsibility and Budget Management (FRBM) Act, was itself not complying with any rules. “It is a known fact that the Centre is squandering millions of crores of rupees due to the States,” he alleged, adding that the Centre’s attitude had become a stumbling block for States like Telangana which maintained financial discipline by managing loans and expenditure within FRBM limits.

The State, he recalled, was losing ₹ 5,000 crore every year as it had refused to implement “anti-farmer” reforms suggested by the Centre like installation of electricity meters to farm services and collection of charges for the power supplied. “That is not our policy. The State will not accept any policy that creates burden on farmers. I will not accept these anti-farmer power reforms as long as I am alive,” he averred.

He said discrimination against Telangana was not new as it started in the initial days of State formation when seven mandals were merged in neighbouring Andhra Pradesh even before the State celebrated its Formation Day. The Centre had delayed division of the united High Court and did not pay heed to recommendation by the Niti Aayog for release of ₹ 24,000 crore towards Mission Bhagiratha and Mission Kakatiya schemes.

“I have made personal requests to the Prime Minister several times to grant additional funds to the newly formed State, but in vain,” he said adding the Centre did not release any additional funds during the difficult times due to COVID-19 pandemic. “Moreover, it slashed funds that are to be given genuinely to the State.”