Hyderabad: The Telangana government has requested the Centre to immediately release Rs 1,433.95 crore dues for urban development under the 15th Finance Commission. The dues includes Rs 468 crore towards the first installment of grant to million-plus cities, Rs 315.75 crore towards balance second instalment of grant to non-million-plus cities, and Rs 650.20 crore pending statutory grants recommended by the 14th Finance Commission.
KT Rama Rao, Telangana Municipal Administration and Urban Development (MA&UD) Minister wrote a letter to the Union Finance Minister Nirmala Sitharaman. KTR in the letter said that “the non-release of statutorily mandated Finance Commission grants and COVID-induced shortfall in the state's own revenues, have handicapped the state no end.” He further stated that the 15th Finance Commission recommended grants amounting to Rs 468 crore to million-plus city (Hyderabad population) and Rs 421 crore to non-million-plus cities in the state, which were to be released in two equal instalments in June and October 2020.
“While the grant to million-plus cities is yet to be released, the grant to non-million-plus cities has been split into four installments in contravention of the recommendation of the Finance Commission, and the first instalment amounting to Rs 105.25 crore has been released on May 19, 2020," he wrote. Rama Rao said Telangana was also denied its rightful entitlement in grants to urban local bodies, as recommended by the 14th Finance Commission (2015-20). "While the Commission recommended unconditional basic grant of Rs 2,711.12 crore, the amount released by the Centre was Rs 2,502.90 crore (a shortfall of Rs 208.22 crore). Though the state had fulfilled all the conditions attached to the performance grant of Rs 677.79 crore, the amount released was only Rs 235.81 crore (shortfall of Rs 441.98 crore).