Hyderabad: Finance minister Bhatti Vikramarka struck a careful balance in his budget speech, acknowledging the Centre’s support while firmly flagging concerns over what he called an uneven fiscal equation. He said Telangana has benefited from increased funding through centrally-sponsored schemes (CSS), but raised concern over the Centre’s decision on the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill. At the same time, he underscored a long-standing grievance: Telangana contributes thousands of crores in taxes every year, but receives, on average, just 42 paise for every rupee through tax devolution. Injustice to statesHe said serious injustice has continued in the distribution to states that are controlling population, increasing their own revenues, and standing as the backbone of the national economy. Seeking to correct what he described as a historical imbalance, he said the govt presented its case before the 16th Finance Commission. According to him, the state succeeded in persuading the commission to consider ‘state GSDP’ as a key parameter in the tax devolution formula, alongside population and income distance. He said Telangana’s share has increased from 2.102 per cent to 2.174 per cent. On CSS, Bhatti said the previous BRS govt had failed to properly utilise funds between 2014 and 2023. He said even funds sanctioned by the Centre were not spent on their intended schemes but diverted for other needs, leading to subsequent instalments being stopped and causing irreparable loss to the state.He said that after coming to power, the present govt identified the issue and, during this financial year, released nearly ₹3,000 crore to clear pending dues under CSS from 2014-15 to 2023-24. Emphasising cooperative federalism, he said the govt is maintaining cordial relations with the Centre to drive development. Funds received under CSS stood at ₹4,826 crore in 2021-22, he said, adding that the state has secured ₹7,072 crore so far this financial year and aims to sustain the momentum. T opposed VB-G RAM GBhatti also flagged concerns over a shift in rural employment policy. He said the central govt introduced VB-G RAM G, replacing Mahatma Gandhi National Rural Employment Guarantee Act, adding that the Telangana legislative assembly unanimously opposed the new law. Under the previous scheme, the Centre provided 90% funding, he said, whereas the new model brings it down to 60%, leaving the state to bear the remaining 40%—something he warned could trigger migration again in Telangana.
