HYDERABAD: Telangana Chief Minister K. Chandrasekhar Rao (KCR) alleged on Thursday that the Narendra Modi govt at the Centre is conspiring to weaken the states financially.

He said that the central government is transferring taxes in the form of a cess in order to deprive states of their constitutionally required part of the federal government's revenues. He said the Centre had taken thousands of crores from the states' due share, addressing at Telangana's formation day festivities.

The chief minister has said that the Centre is implementing various kinds of penalties indiscriminately, damaging the states' economic flexibility. He claimed that while the Centre was urging states to carefully adhere to the FRBM, it was using borrowings arbitrarily and without regard for any norms.

"The attitude of the Centre has become a stumbling issue for states like Telangana, which keeps its finances in check by regulating loans and investment expenditure within FRBM norms. I demand that the Center reconsider and lift the economic sanctions imposed on the states, as well as put an end to any additional violations of the states' rights "he said.

KCR claimed that the Centre's approach toward Telangana, which operates with fiscal discipline and prudence while staying well within the FRBM's boundaries, was causing a huge difficulty. Telangana is losing Rs 5,000 crore per year because it has refused to follow the Centre's anti-farmer power reforms.

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