This story is from May 19, 2020

Centre’s economic stimulus is 100% bogus: Telangana CM

Telangana chief minister K Chandrasekhar Rao on Monday called the Centre’s Rs 21 lakh crore economic stimulus package “100% bogus” and against the spirit of cooperative federalism. He said state governments were not beggars and were more responsible and accountable to the people than the Centre.
Centre’s economic stimulus is 100% bogus: Telangana CM
A civic worker walks in front of containment zone in Hyderabad
HYDERABAD: Telangana chief minister K Chandrasekhar Rao on Monday called the Centre’s Rs 21 lakh crore economic stimulus package “100% bogus” and against the spirit of cooperative federalism. He said state governments were not beggars and were more responsible and accountable to the people than the Centre.
“It (package) is nothing but cheating, deceiving and a number game. I condemn it,” he said.
KCR is probably the first chief minister to openly criticise the package. He had earlier urged the Centre to come to the rescue of the states by giving financial assistance through helicopter money, enhancing the Fiscal Responsibility and Budget Management (FRBM) limit and deferring payment of the state government’s loans.
Quoting articles in international journals on the package announced by the Centre, KCR said at a press conference after the cabinet meeting, “The Centre is asking us to implement reforms but putting our necks on the chopping block. The package should not have been announced in this way. The states have suffered because of the lockdown. Had it been cash flow to the states, the benefits would have reached the people.”
He said FRBM limit has been enhanced by 2% by the Centre which means the state is eligible for another Rs 20,000 crore loans. But even for this, several conditions have been imposed. For instance, if market committee reforms are implemented, the state is eligible for Rs 2,500 crore. Similarly, municipal reforms have to be implemented by enhancing tax collection.
“Is this the way to announce a package during these testing times? This is not a real package, but a bogus one,” KCR said. He alleged that the Centre had been giving some share in taxes in the name of devolution of taxes. “Truly speaking, it is the share of the states in central taxes. The states have a constitutional right to get the share. The central government is collecting taxes in the form of cess from the states,” he said. The CM claimed that of the major reforms, like ease of doing business and one nation and one ration have already been implemented in the state.
“The state would not implement some reforms like for electricity sector and ready to forego Rs 2,500 crore financial loans,” KCR declared.
End of Article
FOLLOW US ON SOCIAL MEDIA