Telangana State Planning Board (TSPB) vice-chairman B. Vinod Kumar has observed that the “Centre has been violating the Fiscal Responsibility and Budget Management (FRBM) Act norms in making huge borrowings while Telangana is well within the limits of the Act, although the Centre is creating hurdles for Telangana’s borrowings”.
He made it clear that Telangana was using every rupee of such borrowings as capital expenditure and development of infrastructure and that the State’s own Tax Revenue (SoTR) was enough to meet salaries of employees and regular schemes such as social security pensions, Rythu Bandhu and Rythu Bima.
Mr. Vinod Kumar, addressing a press conference here on Tuesday, pointed out that it was the Prime Minister-led NITI Aayog that had acknowledged the financial prudence and discipline of Telangana as it had been repaying loan instalments in time every month, including those borrowed for public sector undertakings, with the State Government guarantee.
He said the swift execution of Kaleshwaram project was an example of financial maturity of Telangana, as it would have cost five times higher had it been delayed till now, stating that the price of steel, which was ₹30,000 per tonne then (2016), had reached ₹90,000 per tonne now. He also stated that the Centre had borrowed ₹100 lakh crore going beyond FRBM limits but it was creating hurdles for Telangana’s borrowings within the FRBM regulations.
“Both Prime Minister Narendra Modi and Commerce Minister Piyush Goyal are well aware of Telangana’s fiscal prudence and that’s the reason they are envious about the State and creating hurdles in borrowings and other aspects,” he alleged.
Minister for Transport P. Ajay Kumar said it was grave injustice done to Telangana by the Centre by denying borrowings with it being fifth bottom and that too within FRBM limits, in the list of States in total borrowings, although it was allowing loans to Andhra Pradesh which is fifth in the list of borrowers.
He alleged that the policy of the Centre was privatisation by privatising coal blocks including those in Singareni and asking States (Gencos) to import coal and imposing green (solar) energy purchases, while the policy of Telangana was to protect public sector undertakings including public sector power projects, Singareni and others.
On RFCL
On the stoppage of production in Ramagundam Fertilizer Corporation Ltd (RFCL), Mr. Vinod Kumar said that it was done based on a complaint by local legislator K. Chander following complaints of ammonia leakage and keeping in mind the safety of workers and people in surrounding areas.
