Lok Sabha Question No. 2299 (UNSTARRED), answered on 2015-12-11
Subject: Allocation of Fund to Telangana
Ministry: FINANCE
Asked by: MEKAPATI RAJAMOHAN REDDY, NANDI YELLAIAH

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE PLAN FINANCE-I DIVISION

## LOK SABHA UNSTARRED QUESTION NO. 2299

TO BE ANSWERED ON FRIDAY THE 11 th  DECEMBER 2015/ 20 AGRAHAYANA, 1937(SAKA)

## ALLOCATION OF FUNDS TO TELANGANA

## 2299.  SHRI M. RAJA MOHAN REDDY : SHRI NANDI YELLAIAH

Will the Minister of FINANCE be pleased to state:

- a)  the details of the funds allocated to the State of Telangana during each of the last three years and the current year;
- b)  whether any complaints have been received by the Union Government with regard to irregularities/misuse of allocated funds to Telangana particularly from Mehaboobngar during each of the last three years and the current year; and
- c)  if so, the details thereof and the action taken by the Government thereon?

## ANSWER

## MINISTER OF STATE IN MINISTRY OF FINANCE (SHRI JAYANT SINHA)

(a) to (c): Transfer of Plan funds to the State Governments are mainly through Central Assistance  to  State  Plans  (CASP)  and  Central  Sector  Scheme  (CSS)  annually  assessed within  the  availability  of  Gross  Budgetary  Support.  The  States  of  Andhra  Pradesh  and Telangana were bifurcated effective from the appointed date of 2 nd June 2014 in terms of AP Reorganization Act 2014. The funds were allocated by erstwhile Planning Commission (now  NITI  Aayog)  under  CASP  to  the  State  including  undivided  Andhra  Pradesh  during 2012-13 and 2013-14 and to the State of Telangana during 2014-15. Besides, during 201516,  funds  to  the  State  Governments  including  Telangana  are  released  as  per  extant Scheme guidelines by the concerned line Ministries/Departments of Central Government. Hence,  the  combined  allocation  under  CASP  for  2015-16  is  not  centrally  available  with Ministry of Finance. The details are provided in the following table:

Rs. in Crore

|   S. No. | State            | 2012-13   | 2013-14   | 2014-15#   | 2015-16# (Till 09.12.15)   |
|----------|------------------|-----------|-----------|------------|----------------------------|
|        1 | Andhra Pradesh** | 5893.38   | 5270.11   |            |                            |
|        2 | Telangana **     |           |           | 8680.35    | 4612.36^                   |

Source : NITI Aayog (formely Planning Commission) till 2014-15. This excludes loans for Externally Aided Projects. PFMS for 2015-16.

- (#) w.e.f. 01.04.2014, transfers under Centrally Sponsored Scheme have been included under CASP.
- (**) State of Andhra Pradesh bifurcated into the States of Telangana and Andhra Pradesh on appointed date of 02/06/2014. Hence no allocation has shown for 2014-15 and 2015-16 for Andhra Pradesh and no allocation shown for Telangana for 2012-13 and 2013-14.
- (^) Releases to Telangana under CASP as per PFMS. During 2015-16, funds to the State Governments including  Telangana are released  as per extant Scheme guidelines  including utilization of funds during previous  years,  by  the  concerned  line  Ministries/Departments  of  Central  Government.  Hence,  the combined allocation under CASP for 2015-16 is not centrally available with Ministry of Finance.
2. Further,  the  devolution  of  Central  taxes  and  the  transfer  of  Finance  Commission recommended Non-plan  grants  to  the  States  are  guided  by  the  recommendations  of  the respective Finance Commissions, constituted every five years by the President under Article 280 of the Constitution. The statement indicating budgetary allocations for State-wise share in Central Taxes for 2012-13 (BE), 2013-14 (BE), 2014-15 (BE) and 2015-16 (BE), Non Plan grants recommended by the Thirteenth Finance Commission (FC-XIII) for its award period 2010-15 and by 14 th Finance Commission for 2015-16 are given below:

Rs. in Crore

| S. No.   | State           | Share in Central Taxes   | Share in Central Taxes   | Share in Central Taxes   | Share in Central Taxes   | Non Plan Grants                   | Non Plan Grants         |
|----------|-----------------|--------------------------|--------------------------|--------------------------|--------------------------|-----------------------------------|-------------------------|
|          |                 | 2012-13 (BE)             | 2013-14 (BE)             | 2014-15 (BE)             | 2015-16 (BE)             | FC-XIII award period 2010- 2015)^ | 2015-16 (in FFC Period) |
| 1        | Andhra Pradesh* | 20986.60                 | 24132.36                 |                          |                          | 12164.20                          |                         |
| 2        | Telangana *     |                          |                          | 9749.36                  | 12823.25                 | 1642.80                           | 1111.07                 |

3. No  irregularities/misuse  of  funds  allocated  to  Telangana  have  been  reported  to Ministry of Finance.

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