Hyderabad: Deputy Chief Minister Mallu Bhatti Vikramarka has urged the Union government to allocate more funds under Centrally Sponsored Schemes (CSS), lift restrictions on borrowings, and clear Telangana’s pending dues under the AP Reorganisation Act of 2004.
Bhatti, who also serves as the State Finance Minister, attended a pre-budget meeting chaired by Union Finance Minister Nirmala Sitharaman in Rajasthan on Friday. He pointed out that while Telangana is among the fastest-growing states and makes a significant contribution to the national economy, it has been underfunded in terms of CSS allocations. He requested the central government to adopt a more flexible approach to implementing these schemes.
The minister emphasized the need for enhanced special assistance to states for capital expenditure, proposing an annual allocation of ₹2.5 lakh crore. He also highlighted the importance of allowing flexibility in how funds are used, without restrictive conditions such as mandatory branding requirements under CSS.
Bhatti reminded the Union Minister that Telangana has already requested the release of pending grants worth ₹1,800 crore under Section 94(2) of the AP Reorganisation Act. Additionally, the state is seeking an extension of the ₹450 crore annual grant for backward districts for another five years to support their development.
The Deputy Chief Minister stressed that Telangana requires funding for critical infrastructure projects, including industrial parks, irrigation systems, and highway networks. He also called for the communication of net borrowing ceilings alongside tax devolution figures during budget presentations. Removing borrowing restrictions, he explained, would provide the state with greater fiscal flexibility to achieve its development goals.
The Telangana government further appealed for increased flexibility in the use of MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) funds. Bhatti proposed that these funds be utilized for innovative public works that create employment opportunities while building long-lasting assets. He argued that higher allocations are necessary to address rural job distress effectively.
Additionally, Telangana advocated for the introduction of a Production Linked Incentive (PLI) scheme for micro, small, and medium enterprises (MSMEs) in high-potential sectors. Bhatti called for affordable financing under Reserve Bank of India (RBI) guidelines to revive struggling MSME units. He also stressed the importance of GST rationalization to reduce input costs for these industries and boost their competitiveness.
