E-Paper
‘Bogus’: KCR pans Centre’s Rs 20 lakh crore economic stimulus package
KCR said it is unfortunate that the Centre is trying to rule over the states by taking advantage of the financial crisis plaguing the entire country on account of Covid-19 and the resultant lockdown to control it.
Telangana chief minister K Chandrasekhar Rao on Monday criticised the Centre’s Rs 20 lakh crore economic stimulus package as “bogus”, “hollow” and mere “jugglery of numbers”. He said his government is rejecting it.
Speaking to reporters after the cabinet meeting where the central package was discussed, the chief minister said it clearly reflected the feudal attitude of the Centre.
“Strictly speaking, the Central government has not doled out even Rs one lakh crore, out of the entire package,” he said.
KCR said it is unfortunate that the Centre is trying to rule over the states by taking advantage of the financial crisis plaguing the entire country on account of Covid-19 and the resultant lockdown to control it. He accused the Centre of treating the states as “beggars”.
“This is not what the states wanted. They did not expect these bogus schemes. They wanted financial assistance from the Centre. They never expected to be treated as beggars. This is not the way reforms should be implemented,” he said.
Referring to the raised borrowing limits for states from 3% to 5% of gross state domestic product (GSDP) for the current fiscal year, subject to their carrying out specific reforms, KCR said Telangana could now borrow an additional Rs 20,000 crore loan.
“This is not a favour, but only a facility for us to borrow more which we have to repay anyway. The Centre will not give a single rupee from its pocket. Even for this, the Centre imposed several conditions for borrowing every Rs 2,500 crore, linking it to implementation of reforms like in power sector, municipal administration, one-nation-one-ration card, etc. How can the Centre impose restrictions even for borrowing loans?” he asked.
While both the central and state governments are struggling with cash flows with economic activity coming to a near standstill following the lockdown, states are facing a more acute cash crunch as they are at the forefront of the battle against Covid-19.
He said Telangana had already been a progressive state implementing various reforms and the Centre cannot dictate as to what it should do.
“We are rejecting the power sector reforms it has proposed, which is nothing but usurping the state’s powers. We don’t need this bloody Rs 2,500 crore loan facility,” he said.
Finance minister Nirmala Sitharaman had said the extra borrowing will be linked to specific reforms, including some recommendations by the 15th Finance Commission.
The CM further stressed that the package clearly showed that Prime Minister Narendra Modi’s talk of cooperative federalism is just bogus.
“I am very sorry to say this, but it is completely against federal spirit. We are also constitutionally elected governments and not subordinates of the Centre. This is cheating and betrayal. By offering such a package, the Modi government has lost its image in the eyes of the people,” he said.
Stating that devolution of central funds to the states was a wrong description, KCR said what the states were getting was their due share in the taxes.
“On the other hand, it is the Centre which is cheating the people by collecting additional cess from them in the name of taxes,” he pointed out.
