The Central Government has ruled out further release of pending funds for development of backward regions in Telangana claiming that the entire amount has been released.
Union Minister of State for Finance, Pankaj Chaudhary, replied in the negative when MPs Chamala Kiran Kumar Reddy and Eatala Rajender asked whether there was any outstanding issue in releasing grants due to Telangana. The members asked about the delays in the release of ₹1,800 crore due to Telangana for four years including 2019-20, 2021-22 and 2023-24.
The Union Minister said it was decided to release a total amount of ₹2,700 crore to Telangana in six instalments of ₹450 crore under Section 94(2) of the Andhra Pradesh Reorganisation Act, 2014 and the entire amount had been released.
Section 94 (2) of APR Act
Section 94 (2) of the Act, dealing with fiscal measures including tax incentives to two Telugu States, says that the Central Government should support the programmes for the development of backward areas in the successor States including expansion of physical and social infrastructure. The Centre had accordingly released ₹2,700 crore, ₹450 crore a year at ₹50 crore each for the nine erstwhile districts in Telangana, which were categorised as backward in terms of social and physical infrastructure.
