Centre’s disparity in Grant-in-aid funds to Telangana
The Centre's uneven grant-in-aid financing to telangana continues to impede the State's growth. A pitiful Rs. 2,137 crore, or 5% of the budget projection of Rs. 41,259 crore, was given to telangana in the first five months of the current fiscal year 2023–24. Since the State was formed in 2014, this is by far the lowest percentage of grant-in-aid funds received compared to budget forecasts. The union government normally provides grant-in-aid financing to the States for the execution of different projects and schemes. This financial assistance is essential for improving the socioeconomic development of various parts of the nation.
Despite being crucial to the economy of the nation, telangana has been subjected to ongoing harassment from the Centre due to a lack of funding. According to the most recent data, telangana has regularly been the victim of this inequality on the part of the Centre. The State government of telangana expected getting a grant-in-aid from the Centre for Rs. 21,720 crore shortly after the establishment of the state, but only received Rs. 6,489 crore. The union administration has continued this practise of underfunding for the last nine years by providing less than the State's budget projections.
Budget projections rose with time, from Rs. 21,720 crore in 2014–15 to Rs. 41,001 crore in 2023–24. The grants-in-aid increased similarly, going from Rs. 6,489 crore in 2014–15 to Rs. 13,087 crore in 2022–23. Throughout this decade, the grant-in-aid funding from the central government never surpassed the budget forecasts, with the exception of the fiscal years 2019–20 and 2020–21 when the Covid–19 epidemic had a negative influence on the economy. Ironically, the budget forecasts were drastically cut over these two fiscal years. The majority of the Central Grants were in the range of 31% of the Budget Estimates.
With barely 5% of the anticipated grant-in-aid granted during the first five months of the current fiscal year, the situation has gotten worse. Given the electoral fervour, the finance authorities predict that the grant-in-aid allocation to telangana may decline even further over the coming several months.
It's interesting to see that BJP-run States have received considerable funding. prime minister Narendra Modi's home state of gujarat often got more grant-in-aid than was requested in its budget. gujarat sought Rs. 15,982 crore in grant-in-aid from the Centre in the most recent fiscal year, which is 2022–2023; however, the actual allocation came to a stunning Rs. 23,131 crore, which is a 45 percent increase over the State's estimate.
Additionally, States governed by congress seem to gain more from grant-in-aid financing than telangana, which raises concerns about the fair distribution of resources and funds to the States. For instance, it was predicted that chhattisgarh would get Rs. 16,750 crore in grant-in-aid for the fiscal year 2022–23, and the Centre contributed Rs. 13,148 crore, or 79% of this estimate.
Budget projections rose with time, from Rs. 21,720 crore in 2014–15 to Rs. 41,001 crore in 2023–24. The grants-in-aid increased similarly, going from Rs. 6,489 crore in 2014–15 to Rs. 13,087 crore in 2022–23. Throughout this decade, the grant-in-aid funding from the central government never surpassed the budget forecasts, with the exception of the fiscal years 2019–20 and 2020–21 when the Covid–19 epidemic had a negative influence on the economy. Ironically, the budget forecasts were drastically cut over these two fiscal years. The majority of the Central Grants were in the range of 31% of the Budget Estimates.
With barely 5% of the anticipated grant-in-aid granted during the first five months of the current fiscal year, the situation has gotten worse. Given the electoral fervour, the finance authorities predict that the grant-in-aid allocation to telangana may decline even further over the coming several months.
It's interesting to see that BJP-run States have received considerable funding. prime minister Narendra Modi's home state of gujarat often got more grant-in-aid than was requested in its budget. gujarat sought Rs. 15,982 crore in grant-in-aid from the Centre in the most recent fiscal year, which is 2022–2023; however, the actual allocation came to a stunning Rs. 23,131 crore, which is a 45 percent increase over the State's estimate.
Additionally, States governed by congress seem to gain more from grant-in-aid financing than telangana, which raises concerns about the fair distribution of resources and funds to the States. For instance, it was predicted that chhattisgarh would get Rs. 16,750 crore in grant-in-aid for the fiscal year 2022–23, and the Centre contributed Rs. 13,148 crore, or 79% of this estimate.