KTR urges Centre to release ` 1,434 cr dues

Writes to FM about Covid-induced revenue shortfall

Municipal administration and urban development minister K.T. Rama Rao has urged Union finance minister Nirmala Sitharaman to release `1,433.95 crore that is due to the state under the 15th Finance Commission, immediately.

He wrote a letter to her on Saturday stating that the non-release of statutorily mandated grants and the Covid-induced shortfall in state revenues have affected the government no end.

He told the finance minister that the Finance Commission had recommended that grants amounting `468 crore to the million-plus city like Hyderabad and

`421 crore to non-million plus cities in the state should be released in two equal installments in June and October. This recommendation had been accepted by the Centre and an action taken report (ATR) to that effect was placed in Parliament.

Stating that the grant to million-plus cities is yet to be released, Rama Rao said that grant to non-million plus cities had been split into four instalments, in contravention of the recommendation of the Finance Commission. The first of four instalments amounting to

`105.25 crore was released on May 19.

The additional budget provisions matching the Finance Commission grants that were made in the state budget pending the report of the first state finance commission, clearly demonstrates the commitment of the state to urban development, the minister said. Rama Rao said that the state was denied its rightful entitlement in the grants to urban local bodies recommended by the 14 Finance Commission (2015-20). While the commission recommended an unconditional basic grant of `2,711.12 crore, the Centre had released

`2,502.90 crore, less by

`208.22 crore.

He said though the state had fulfilled all conditions attached to the performance grant of `677.79 crore, the Centre had released

`235.81 crore, resulting in a shortfall of `441.98 crore. Together, the state was denied `650.20 crore of the statutory grant to urban local bodies, though the full amount was released to other states.

Rama Rao said all pending dues under the Finance Commission amounted to `1,433.95 crore, which includes the first installment of grant to million plus cities `468 crore), the second installment of grant to non-million plus cities (`315.75 crore) and pending statutory grants recommended by the 14 Finance Commission

(`650.20 crore).