New Delhi, February 2: Southern states had mixed response to the Union Budget 2020 presented by Finance Minister Nirmala on Saturday. Kerala and Telangana state governments hit out at the Centre over a decline in tax share. While Kerala Finance Minister Thomas Isaac accused the Centre of trying to "throttle" the state through the Budget, Telangana Chief Minister K Chandrasekhar Rao called it "totally disappointing". The YSR Congress Party government in Andhra Pradesh also expressed its disappointment over the Budget. New Income Tax Rates And Slabs For FY 2020-21.

"Kerala has suffered. Our tax share was Rs 17,800 crore last year and now it will be only Rs 15,000 crore. It is an absolute decline to the devolution to the state," Thomas Isaac told news agency ANI on Sunday. While Kerala's share of tax has reduced, it is yet to receive Goods and Services Tax compensation of around Rs 3,500 crore from the Centre. KCR, as Telangana Chief Minister is popularly known, said that the Union Budget may adversely affect the development of his state. Nirmala Sitharaman Cuts Short Her Budget 2020 Speech After Beginning to Feel Unwell in Parliament.

"The centre has shown discrimination against Telangana by imposing severe cuts on funds to be released for the state. It is atrocious that state's share has been reduced in the central taxes," he said in a statement released by Chief Minister's office. Telangana's share of tax has also reduced. "In the 2019-20 financial year, an amount worth Rs 19,718 crore was due from the centre to Telangana. The centre had announced in the last budget that this amount would be paid to Telangana. But in the revised estimates, it was reduced to Rs 15,987 crore," Rao said. What Nirmala Sitharaman Missed Announcing in Budget 2020.

With this, in the present financial year, among the funds due from the centre, there is a reduction of Rs 3,731 crore. In anticipation of obtaining Rs 19,718 crore, this also led to the state financial planning going awry as the centre imposed cuts in the release of funds to the state," he added. Andhra Pradesh Finance Minister B Rajendranath Reddy said that the Budget had nothing for his state. "The special category status is our right, but the Centre is not doing anything about it," Reddy said, as he aired serious concerns over the dwindling central devolutions to the state.

Karnataka and Tamil Nadu state government, however, welcome the Union Budget 2020. Calling the Budget "growth-oriented", Tamil Nadu Chief Minister K Palaniswami said that it has been drawn with focus on infrastructure development, agriculture, irrigation and rural development. Karnataka Chief Minister BS Yeddiyurappa hailed the Budget as "pro-people, pro-farmer and pro-poor".

(The above story first appeared on LatestLY on Feb 02, 2020 11:47 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).