Telangana to get 700 crore development fund

The Union Government has agreed to release Rs 700 crore for development of backward areas in Telangana. It also accepted the demand to release the Central State Tax (CST) dues pending for this year, Telangana Finance Minister Eatala Rajender said. Eatala Rajender met Union Finance Minister Arun Jaitely in New Delhi and discussed all the financial-related issues with him. 

Telangana State has been demanding an increase in its borrowing limit from 3 per cent to 3.5 per cent of the Gross State Domestic Product



under the Fiscal Responsibility and Budget Management (FRBM) Act. The Union Minister promised that the demand on the borrowings will be taken up in the Union Cabinet meeting and get its approval at the earliest.

Jaitely responded positively to other demands, including Rs 770 crore under local bodies grant and incentives for industrial sectors according to the AP Reorganisation Act. Eatala Rajender also called on Joint Secretary of Union Ministry of Civil Supplies and Consumer Affairs V Swarup.