Budget 2020: AP, Telangana Gets Raw Deal

NEW DELHI: The Union Budget of India for 2020–2021 (presented by the Finance Minister, Nirmala Sitharaman on 1 February 2020 focussed on the central idea of a "Aspirational India, Economic development, A Caring Society. At 2 hours and 41 minutes, the budget speech was the longest ever delivered by a Finance Minister of India.

Before the budget speech the report of the 15th Finance Commission was tabled by the Finance Minister.

The Finance Commission is a body that determines how the tax revenues collected by the Union government are distributed among the states. The 15th Finance Commission has been constituted to formulate the distribution of funds among all states for a period of six years.

While the interim report for 2020-2021 was tabled in the Parliament on Saturday, the 15th Finance Commission (15th FC) will submit its final report in October this year for the period 2021-2026. During her Budget speech, Finance Minister Nirmala Sitharaman said, “In the spirit of cooperative federalism, I am pleased to announce that we have, in substantial measure, accepted the recommendations of the Commission.”

Based on these parameters the 15th FC has redistributed the tax share among the 28 states. The new allocations will significantly affect Andhra, Telangana, Karnataka & Kerala, which will see a reduced share of tax revenue compared to the previous Finance Commission.

Also Read: Union Budget Failed To Allocate Funds To State As Per AP Reorganisation Act

The YSR Congress Party, has placed nine demands for Sitaraman’s consideration.

- Special Category Status (SCS, pending since United AP was divided to separate Telangana)

- Rs 18,969 crore fund to make up revenue deficit as per CAG audit

- Funds for basic infrastructure for Raj Bhavan, Secretariat and High Court buildings

- Rs 23,000 Crore for development of backward districts

- Reimbursement of Rs 3,283 Cr spent by the state government for construction of Polavaram multipurpose irrigation project on river Godavari.

- Approval for revised estimates of Polavaram project, Rs 55,548 crore

- Rs 47,424 Cr for capital city development

- Funds for building Ramayampet seaport and Kadapa steel plant

- Railway projects

Also Read: Telangana CM KCR Says, ‘Union Budget Totally Disappointing’

Chief Minister K Chandrasekhara Rao has also placed Telangana’s wish list , which included- Support for Kaleshwaram Lift Irrigation project on river Godavari

- Similar lift irrigation project on river Krishna and Palamuru – Rangareddy lift irrigation scheme

- Funds for Mission Bhagiratha, that aims at supplying drinking water to every household in the state. The government projected Rs 52,941 Cr expenditure on the project

- Creation of Turmeric Board with Nizamabad as headquarter

- Railway coach factory at Kazipet

The Turmeric and Spice Board might become a reality with the Central Government approving the constitution of the special Board at Nizamabad (With Inputs From TOI)