Stimulus package is pure 'cheating'; Centre treating states

Telangana Chief Minister K Chandrasekhar Rao on Monday lambasted the Narendra Modi-led NDA government over the fiscal stimulus package, accusing it of treating states like "beggars" and imposing "laughable" conditions for increasing borrowing limits under the FRBM Act.

This is pure cheating. Betrayal. Jugglery of numbers. All gas. The Centre has reduced its own prestige, he said, referring to the conditions linked to the increased borrowing limits for states under the Fiscal Responsibility and Budget Management (FRBM) Act.

Citing international journals as having commented whether the Union Finance Ministers aim was to revive the GDP or to reach the Rs 20 lakh crore number (the stimulus package announced by Prime Minister Narendra Modi), he said This is a very cruel package".

"It is fully in a feudal policy and dictatorial attitude. We fully condemn this. This is not what we asked for, Rao, who had supported several measures taken by the Centre so far in the fight against coronavirus, said.

At a time when the finances of state governments were paralysed due to the COVID-19 global pandemic, the state governments wanted funds to reach them so that they can help the people in different forms, he said.

When we asked for it, you treat states like beggars, what did the Centre do? Is this the way reforms are implemented in India, he told reporters after a cabinet meeting.

For example, two per cent increase under the Fiscal Responsibility and Budget Management (FRBM) Act (about Rs 20,000 crore in Telangana) has been given.

"But, the conditions put are laughable" and "very nasty" though the loan was to be fully repaid by the state.

Explaining, he said Rs 2,500 crore would be given if reforms were implemented in power sector and Rs.2,500 crore would be allowed if reforms in market committees as suggested by the Centre are accepted.

Is this package. What is this? This cannot be called a package. Very sorry. This is not the policy to be followed in a federal system... Then what the state governments are for?