Nirmala Sitharaman made it clear that the Centre was not allowing any enhanced borrowings by Telangana under the Fiscal Responsibility and Budget Management (FRBM) norms
Updated On – 10:59 PM, Tue – 21 November 23
Union Finance Minister Nirmala Sitharaman talking to the media in Hyderabad on Tuesday.
Hyderabad: Union Finance Minister Nirmala Sitharaman on Tuesday made it clear that the Centre was not allowing any enhanced borrowings by Telangana under the Fiscal Responsibility and Budget Management (FRBM) norms as those were linked to the power sector reforms. Telangana had refused to implement these power reforms arguing that they would impose financial burden on the farming community.
This is exactly what Chief Minister K Chandrashekhar Rao has been saying all along while highlighting what he termed as the Centre’s discrimination towards the State. Even during his recent public meetings, the Chief Minister has repeatedly been pointing out that the State was being deprived of Rs.25,000 crore at the rate of Rs.5,000 crore a year since it did not accept the Centre’s insistence that the State should implement a series of reforms in the power sector, including installation of meters to agriculture pump sets in the State. The meters would mean a huge financial burden on farmers, the Chief Minister had pointed out.
Sitharaman, talking to the media here on Tuesday, said the Centre was not allowing additional/enhanced borrowing to Telangana as it had refused to implement the power reforms. Other States had fixed the meters and the Centre had given them permission for additional borrowing.
“You have not fixed meters and you want extra borrowing. How is it possible? You fulfill the conditions, we will increase the borrowing. How can we give an exemption to Telangana? It is not possible,” she said.
Sitharaman’s statement has contradicted the assertion of union Minister for Power and New & Renewable Energy RK Singh, who recently said he never made any statement on making fixing of meters to agriculture pump sets compulsory.
Later in the day, the Chief Minister pointed out how the union Finance Minister had admitted to having imposed financial cuts on the State.
Participating in the Praja Ashirvada Sabha in Suryapet, Chandrashekhar Rao said unlike leaders from New Delhi, the BRS understood the needs of Telangana and its people. While the BRS government was supplying free power to farmers, Prime Minister Narendra Modi was insisting that all agricultural connections should be fitted with meters.
“Things are improving in Telangana’s agriculture sector due to our initiatives. Hence, I rejected his proposal. But the Prime Minister cut Rs.25,000 crore i.e. 0.5 per cent of our borrowings over a period of five years. Today, union Finance Minister Nirmala Sitharaman shamelessly admitted to having imposed the cut, claiming that all other States were installing the meters and that Telangana would be given no exemption,” he said.
Pointing out that the BJP-led Centre had established 157 government medical colleges across the country, but sanctioned none to Telangana, Chandrashekhar Rao said that despite he writing over 100 letters, the Centre did not allot even a Navodaya school to the State, which was in violation of the Parliamentary Act.
