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Telangana financially on a firm footing

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Despite the dent in revenues during the last two years due to Covid pandemic and lack of help from the Centre, Telangana financially appears to be on a firm footing.

With a higher growth rate and per capita income than many bigger states, India’s youngest state has become the fourth largest contributor to national GDP in a short span of less than eight years and claims to be a model for the entire country in welfare and development.

According to 2020-21 budget estimates, Telangana’s estimated outstanding public debt will be over Rs 2.86 lakh crore. However, the economists say the state has the capacity to manage debts.

According to a study paper released by the Reserve Bank of India (RBI) last month, Telangana’s debt-to-GSDP ratio is the lowest in the country, indicating the fiscal health of the state.

Based on the annual data between 2014-15 and 2018-19, the study paper revealed that the State Performance Composite Index (SPCI) of Telangana has improved. SPCI measures both the fiscal performance and market development of states.

The average debt to Gross State Domestic Product (GSDP) of Telangana from 2014-15 to 2018-19 was 16.1 per cent, which is the lowest among the states in the country.

According to state finance minister T. Harish Rao, Telangana is among the states having the lowest debt burden in the country, dismissing the claim by the opposition parties that the Telangana Rashtra Samithi (TRS) government has pushed the state into a debt trap.

Harish Rao had told the state Assembly last year that Telangana’s debt burden is only 22.8 per cent of GSDP, which is well within the permissible limits under the FRBM Act. Telangana was then at the third place from the bottom in the country.

“The Centre’s debt burden is 62.2 per cent of GDP while Telangana’s debt burden is just 22.8 per cent of GSDP,” he had stated.

The RBI also revealed recently that Telangana is the fourth largest contributor to the country’s economy. According to “Handbook of Statistics on the Indian Economy 2020-21” the Net State Value Added (NSVA) by Telangana at current prices to the country increased from Rs 4,16,930 crore in 2014-15 to Rs 8,10,503 crore in 2020-21.

Leaders of ruling TRS say this contribution is significant considering the fact that Telangana is the 11th largest state in terms of geographical area and 12th in terms of population.

According to Telangana State Statistical Abstract Report released this week, provisional estimates show the GSDP of Telangana at current prices in 2020-21 was Rs 9,80,407 crore. Between 2012-13 and 2020-21, the average annual GSDP growth of Telangana was 6.8 per cent and GDP of India was 5.1 per cent.

For 2021-22, the state presented a Rs 2.31 lakh crore budget despite the pandemic drastically impacting the state’s economy. For 2020-21 the budget size was Rs 1.82 lakh crore.

The budget for FY22 comprised revenue expenditure of Rs 1.69-lakh crore and capital expenditure of Rs 29,046 crore. The fiscal deficit went up to Rs 45,509 crore from Rs 33,191 crore in the previous financial year.

Telangana’s growth rate has been consistently higher. In 2018-19 it was 9.8 per cent against GDP growth rate of 6.5 per cent. The growth rate was 6 per cent in 2019-20 against GDP growth rate of 4 per cent. In 2020-21, it was -0.6 per cent against All India -7.3 per cent.

In another key performance indicator, the per capita income of Telangana increased from Rs 91,121 in 2011-12 to Rs 2,37,632 in 2020-21. This is against all India averages ranging from Rs 63,462 in 2011-12 to Rs 1,28,829 in 2020-21.

In another boost for Telangana, the latest data by the Centre for Monitoring Indian Economy revealed that the state has lowest unemployment at 0.7 per cent.

Economist Papa Rao believes that Telangana has no financial worries as it is performing well despite not receiving the support from the Centre. “Some debts were unduly raised but the state has the capacity to manage them. It can generate its own resources,” he said while pointing out that the state’s tax revenues have gone up during the current year. He, however, said the state should be cautious in raising new loans.

According to him, Telangana in a short span of time has emerged as a progressive state with Hyderabad as the growth engine attracting massive investments. The state created assets in the form of irrigation projects and Mission Bhagiratha which envisages drinking water supply to every house.

He, however, believes that Dalit Bandhu scheme launched by TRS government recently is not viable. Under the scheme claimed to be the only one of its kind in the country, the government plans to provide Rs 10 lakh grant to every Dalit family.

“There are 50 lakh Dalit families. Mobilizing such huge funds is very difficult. This may take many years and may not yield desired results,” Papa Rao said.

Pointing out that an overwhelming majority of Dalits are agriculture labourers, the economist said distribution of land rather than cash would have been more practical.

The state claims to be number one in welfare in the country with a welfare budget of over Rs 40,000 crore. It is implementing a plethora of welfare schemes from social security pensions to various categories to financial help for marriages of poor girls to Rythu Bandhu under which every farmer gets Rs 10,000 as annual investment support for every acre.

However, opposition Congress party leader Dasoju Srravan says that welfare programs should ultimately empower people. “Farmers’ suicides have not stopped despite Rythu Bandhu. During the last 4-5 years 8,000 farmers have ended their lives. Farmers do not want Bandhus, they want MSP for the hard work they put in and market support for agricultural produce,” he said.

The national spokesperson of the Congress party believes that the TRS government is focusing more on voter alluring programs but not voter empowerment programs. “As a result the state has landed into a serious debt trap and today we are a financially bankrupt state. We don’t have money for salaries and we don’t have money for repayment to contractors.”

He blamed lopsided priorities of the government, mismanagement, callous understanding of development for this situation. “On top of it is mysterious corruption in projects. TRS leadership has become extremely rich overnight,” he said.

The Congress leader alleged that the state government is making people addicted to liquor by opening more and more wine and bar shops across the state. “It is giving pensions and some money under Rythu Bandhu but draining their resources through sales tax on liquor. See how liquor revenue has increased in these 7-8 years,” he said.

The revenue from liquor sales, which was Rs 10,833 crore, has gone up to Rs 27,888 crore in 2020-21.

He alleged that the TRS government completely ignored sectors like education, health and employment generation

“The chief minister proudly says a private villa in Hyderabad costs Rs 25 crore and still people are coming and buying. Is that a development indicator? It is a third-rate governance indicator. In management we call it critical incident analysis while analyzing performance. The CM made critical comments reflecting his innate mindset and how he sees development,” Srravan said.

National News

CM Yogi’s ‘2 namoone’ jibe at Oppn over codeine row, Akhilesh hits back with a twist (Lead)

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Lucknow, Dec 22: Uttar Pradesh Chief Minister Yogi Adityanath on Monday launched a tirade at the opposition over the codeine cough syrup controversy and hurled a ‘2 namoone’ jibe — pointed towards two ‘young’ leaders, one in Delhi and the other in Lucknow.

The Chief Minister, speaking in the Legislative Assembly, rejected any reports of death in the state due to codeine syrup and also vowed to take bulldozer action against those involved in its manufacture and illegal trade.

“No deaths have occurred from codeine cough syrup in Uttar Pradesh… There are two namoones inside the country, one sitting in Delhi and one in Lucknow. Whenever any discussion happens in the country, they immediately flee the country,” he said, taking a swipe at the Leader of Opposition (LoP) Rahul Gandhi and Samajwadi Party (SP) supremo Akhilesh Yadav, without taking names.

The Chief Minister added that strict action would be taken under the Narcotic Drugs and Psychotropic Substances (NDPS) Act against all those involved in illegal trade and also drew a link between the syrup’s licence with the then SP government.

“The biggest wholesaler, who was first caught by the STF, was issued a licence by the Samajwadi Party in 2016,” he pointed out.

CM Yogi’s remarks in the Assembly came on the back of opposition leaders staging a protest inside and outside the Assembly, demanding a discussion on the cough syrup matter.

The SP chief was, however, quick to respond to the Chief Minister’s diatribe and hit back with a twist.

Akhilesh Yadav interpreted CM Yogi’s remarks as “self-acceptance of two power centres” in the BJP and projected it as a fight between the two.

Insinuating that there was a power tussle between the BJP’s central leadership and the Yogi government, he said that it has come out in the open and the latter should be “wary of offending” the former.

“Self-Acceptance! No one expected the Delhi-Lucknow feud to escalate to this point. People holding constitutional positions should at least maintain some public decorum among themselves and not cross the bounds of propriety. BJP folks should not bring their party’s internal squabbles out to the crossroads. If someone takes offence somewhere, you might have to backtrack,” he wrote in a post on X.

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National News

BJP backs RSS chief’s ‘Hindu Rashtra’ remarks, Oppn says Constitution run’s country

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New Delhi, Dec 22: The BJP on Monday came out in support of Rashtriya Swayamsevak Sangh (RSS) chief Mohan Bhagwat’s remarks describing India as a “Hindu Rashtra” and his comments flagging what he termed “Islamic extremism” in West Bengal, triggering sharp political reactions across parties.

Addressing a gathering on Sunday, Bhagwat had asserted that India is a “Hindu nation” and said no constitutional sanction is required for it, as it is a “truth”.

He also raised questions over suspended Trinamool Congress MLA Humayun Kabir’s announcement to construct a Babri Masjid-like mosque in West Bengal, alleging that the move was “being done for votes”. The RSS chief further stated that government funds should not be used for the construction of religious places.

Backing Bhagwat’s remarks on Bengal, BJP spokesperson Pratul Shah Deo cited recent developments in Murshidabad, where an announcement regarding the construction of a Babri Masjid had been made.

Speaking to media, Deo said, “The entire West Bengal government called Maulanas there and afterwards, a large gathering was held where it was stated that we will build the Babri Masjid here. This is being done solely by the Trinamool Congress to appease the Muslim community, which is an insult to the Sanatanis. For show, they did suspend the MLA, but his arrest has not yet been made, indicating collusion between the government and this suspended MLA.”

He further alleged that the issue was deliberately raised with elections approaching.

“This is not an issue that needed to be raised at this time, but with elections in sight, the Trinamool Congress has deliberately raised this issue through one of its MLAs. So, the RSS chief is right,” Deo added.

BJP MLA Ram Kadam also supported Bhagwat’s remarks and stressed the need for Hindu unity.

Speaking to media, Kadam said, “Our Sarsanghchalak’s statement is true and attempts to shed light on the reality. On the sacred land of West Bengal, Mamata Banerjee and her supporters have caused suffering, harassment and oppression to our Hindus. They have forced their way into homes, committed misconduct against women and the people of Bengal are witnessing all of this.”

Kadam further alleged political motives behind references to Babri Masjid.

“Those who claim to speak in the name of Babri are doing so only for political gains. They do not care for anyone and are merely using excuses to gain control over a particular religion. However, if Hindus unite, no one would dare to engage in such Pakistan-pleasing, deceitful actions,” he said.

Shiv Sena leader Manisha Kayande emphasised that Hindus should unite in the face of emerging challenges.

“Considering the kind of activities taking place in our country and the nature of threats we face, Hindus should not divide themselves on the basis of caste and must unite. Our party firmly believes in this stance,” she told media.

The Opposition, however, strongly criticised the RSS chief’s remarks, asserting that India is governed by the Constitution and not by ideological declarations.

Samajwadi Party MP Awadhesh Prasad questioned the premise of the “Hindu Rashtra” statement.

Speaking to media, he said, “I would like to ask Mohan Bhagwat, very respectfully, what kind of Hindu nation he wants. Today, the highest constitutional and administrative positions in our country are held by Hindus. The President, the Prime Minister and the Chief Justice of the Supreme Court are all Hindus.”

Prasad pointed out that political leadership across parties is predominantly Hindu.

“Leaders of the ruling party are Hindus, and even leaders of the Opposition, including the Samajwadi Party, are Hindus. The Chief Minister of Uttar Pradesh is also a Hindu. So what is the scale or definition by which they measure who is Hindu and Hindu Rashtra?” he asked.

He further said Bhagwat must clarify whether such a vision aligns with constitutional values.

“Our country functions through the Constitution, through which Baba Saheb Ambedkar gave equal rights to all communities. Bhagwat should clarify whether he intends to follow the Constitution framed by Baba Saheb Ambedkar in his so-called Hindu Rashtra,” Prasad added.

Janata Unnayan Party founder Humayun Kabir also reacted to Bhagwat’s comments, dismissing fears of unrest.

Speaking to reporters, he said, “We respect Mohan Bhagwat, but his assessment that there might be riots here is incorrect. We will not allow any such situation. When a Trinamool leader announced the construction of a temple, there were no riots. So why would it happen now?”

Kabir further alleged links between the RSS and the Bengal government.

“Mohan Bhagwat needs the state government’s permission to visit here. Since Mamata Banerjee has been helping the RSS in the state, the number of their shakhas has increased from 558 to 12,000. On the other hand, madrasas receive nothing, and the Muslim community does not get any benefits,” he claimed.

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Crime

SC stays conviction of ex-NCP minister Manikrao Kokate in Nashik housing fraud

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New Delhi, Dec 22: The Supreme Court on Monday stayed the conviction of senior Nationalist Congress Party (NCP) leader and former Maharashtra minister Manikrao Kokate in the 1995 Nashik housing fraud case.

A Bench of Chief Justice of India (CJI) Surya Kant and Justice Joymalya Bagchi issued notice to the Maharashtra government on Kokate’s plea challenging the refusal of the Bombay High Court to stay his conviction. Though it protected his membership in the Maharashtra Legislative Assembly, the apex court clarified that Kokate will not be allowed to exercise any governmental powers while the proceedings are pending.

“Issue notice. Meanwhile, the conviction of the petitioner shall remain stayed to the extent that there shall be no disqualification as a Member of the Legislative Assembly. However, no power shall be exercised by the petitioner,” the CJI Kant-led Bench ordered.

The relief from the top court comes days after the Bombay High Court had refused to stay Kokate’s conviction but suspended his two-year jail sentence and granted him protection from arrest as it heard his revision plea against the sessions court verdict.

Earlier, a Nashik sessions court had convicted Kokate in a case involving the illegal acquisition of government flats reserved under the Chief Minister’s quota and sentenced him to two years’ rigorous imprisonment along with a fine of Rs 50,000.

Following the sessions court verdict, Kokate was stripped of the Sports and Minority Affairs portfolios, and he resigned from the Maharashtra Cabinet. His resignation was accepted by Maharashtra Deputy Chief Minister and NCP chief Ajit Pawar amid a chorus from the Opposition.

The case against Kokate and his brother Vijay Kokate dates back to 1995 and pertains to the alleged misappropriation of flats meant for low-income individuals who do not own any other property.

The prosecution alleged that the brothers submitted forged affidavits and documents to acquire flats in the Nirman View Apartment at Canada Corner in Nashik. Investigations had also revealed that the brothers were using two additional flats in the same building that had been allotted to other beneficiaries.

Based on an inquiry by the district administration, Vishwanath Patil, then an official of the Urban Land Ceiling (ULC) department, lodged a complaint, following which a fraud case was registered at the Sarkarwada Police Station.

Since his induction into the Cabinet, Kokate has frequently courted controversy. He was earlier divested of the Agriculture portfolio following allegations that he was playing games on his mobile phone during a Legislative Council session.

Kokate denied the charge, but the episode drew widespread criticism. He also drew criticism for remarks on farmers and for attacking coalition partner BJP during a municipal campaign.

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