 bill no 247 of 2015 the state of telangana (special category status and financial assistance)  bill, 2015 byshri vinod kumar boianapalli, mpa billto confer special category status to the state of telangana, provide for special financialassistance to the state for the purposes of promoting the welfare of the scheduledcastes, the scheduled tribes and the other backward sections of citizens,development of backward districts and exploitation and proper utilizationof its resources and for matters connected therewithbe  it enacted by parliament in the sixty-sixth year of the republic of india as follows:—(2) it shall come into force on such date as the central government may, by notification in the official gazette, appoint2 (1) on and from the date of commencement of this act, the state of telangana shall have the status of a special category state5special category status to the state of telangana(2) the special category status to the state of telangana shall entitle the state with such benefits as the central government may, by notification in the official gazette, specify(3) without prejudice to the generality of the foregoing provision, the state of telangana shall be entitled to the following benefits:—10(a) special central financial assistance through grants or loans on the basis of90:10 ratio with 90 per cent to be contributed by the central government and 10 per cent to be contributed by the state government;(b) such fiscal incentives and concessions in excise and custom duties, income tax rates and corporate tax rates, as may be deemed necessary, to promote industrialization and economic growth; and(c) allocation of adequate funds for specific development projects15special financial assistance203 there shall be paid such sums of money out of the consolidated fund of india, every year, as parliament may by due appropriation by law provide, as special financial assistance to the state of telangana to meet the costs of such schemes of development, as may be undertaken by the state with the approval of the union government, for the purpose of—(i) promoting the welfare of the scheduled castes, the scheduled tribes, the minorities and the other backward classes of citizens;(ii) development and proper utilization of the resources in the state; and25(iii) development of backward areas including expansion of social and physical infrastructureraising the ceiling on borrowings4 notwithstanding anything contained in any recommendations or guidelines of the central government fixing a limit on the net proceeds of borrowings by the state governments, the government of the state of telangana may raise resources through borrowing upto 349 per cent of its gross state domestic product to eliminate revenue deficit305 the provisions of this act shall be in addition to and not in derogation of any other law for the time being in forceact not in derogation of other laws statement of objects and reasonsthe new state of telangana breathed life on june 2, 2014 after more than half a century of struggle and owing to the results of a democratic movement that has been unrivalled in modern india the historical injustice and exploitation faced by the region has compelled it to begin its existence in a highly backward condition nine out of ten districts of the state of telangana were identified by the centre as backward and were under the backward regions grant fund (brgf) the telangana region in the undivided andhra pradesh faced severe infrastructural and development deficits, incidents of drought, water and electricity shortages and suicide by farmersin order to address these challenges, financial assistance in various forms is required from the centre, particularly under the backward regions grant fund, which has since been discontinued with nine out of ten districts being officially designated as backward, the state of telangana should be accorded a special category status statesub-sections (1) and (2) of section 94 of the andhra pradesh reorganisation act, 2014provides that the centre shall support both andhra pradesh and telangana states in their development endeavour through various measures, including tax incentives the special package which has been provided to the state of andhra pradesh should therefore be extended to the state of telangana also as conditions being faced by the people of the state of telangana are similar to those being faced by the people in certain parts of odisha, madhya pradesh and uttar pradesh, it becomes necessary that special plans like the koraput-bolangir-kalahandi (kbk) special plan of odisha and the bundelkhand plan for madhya pradesh and uttar pradesh should also be implemented in the state of telanganaas all these efforts require increased amounts of expenditure, the fiscal responsibility budget management guidelines for raising resources through borrowings for the state of telangana should be upto 349 per cent of gross state domestic product such a step of providing financial assistance to the state of telangana would go a long way in building a stronger nationhence this billnew delhi;vinod  kumar  boianapalli6th  may, 2015 ———— president's recommendation under articles 117(1), 274(1) and 117(3) of the constitution[copy of letter no 42(4) pf-i/2015 dated 23 july, 2015 from shri jayant sinha, minister of state in the ministry of finance to the secretary general, lok sabha]the president, having been informed of the subject matter of the state of telangana(special category status and financial assistance) bill, 2015 by shri vinod kumar boianapalli, mp, recommends introduction and consideration of the bill in lok sabha under articles 117(1), 274(1) and 117(3), respectively, of the constitution financial memorandumclause 2 of the bill provides for according special category status to the state of telangana it further provides that the central government shall extend special financial assistance through grants, loans, fiscal incentives and concessions in excise and custom duties, income tax rates, corporate tax rates for industrialisation and economic growth and allocation of funds for specific development projects clause 3 provides that there shall be paid such sums of moneys out of the consolidated fund of india every year, as parliament may by due appropriation by law provide, as special financial assistance to the state of telangana to meet the costs of such schemes of development, as may be undertaken by the state with the approval of the union governmentthe bill, therefore, on enactment, will involve expenditure from the consolidated fund of india as the sums of money which will be given to the state of telangana as special financial assistance will be known only after the welfare schemes to be implemented by the state government with the approval of union government are identified, it is not possible to give at this stage the estimates of recurring expenditure, which would be involved out of the consolidated fund of indiano non-recurring expenditure is likely to be involved out of the consolidated fund of india———— a billto confer special category status to the state of telangana, provide for special financialassistance to the state for  the purposes of promoting the welfare of the scheduledcastes, the scheduled tribes and the other backward sections of citizens,development of backward districts and exploitation and proper utilizationof its resources and for matters connected therewith————(shri vinod kumar boianapalli, mp)