Hyderabad: Finance Minister T. Harish Rao presented a budget of Rs. Rs.1,82,914 Crore for Telangana State for the financial year 2020-21, an increase by a whopping Rs. 40,762 crore compared to revised budget of 2019-20.
“In 2020-21 financial year, I am proposing Rs.1,82,914.42 crore of expenditure. Out of this, the revenue expenditure is Rs.1,38,669.82 crore and capital expenditure is Rs.22,061.18 crore. It is estimated that surplus in Budget Estimates is Rs.4,482.12 crore, while the fiscal deficit is Rs.33,191.25 crore,” Harish Rao said while presenting his maiden budget as Finance Minister in the Assembly on Sunday.
Harish Rao informed that as per the Revised Estimates, the total expenditure in 2019-20 is estimated at Rs.1,42,152 crore. Out of this, the revenue expenditure is Rs. 1,10,824 crore while capital expenditure is Rs.13,165 crore. As per the revised estimates, surplus in revenue account is Rs.103.55 crore.
It may be mentioned that Chief Minister K. Chandrashekhar Rao had presented an Vote-on-Account budget of Rs. 1,82,017 crore for 2019-20 in February 2019. In view of economic slowdown, the budget was trimmed and the Chief Minister presented a full-fledged budget in September 2019 cutting down the total estimated expenditure to Rs. 146,492 Crore. It was later revised to Rs. 1,37,226 crore and now to Rs. 1,42,152 crore.
Harish Rao claimed that the annual budget for 2020-21 has been prepared realistically with the sole aim of promoting the welfare of all the sections of the society and improving the growth prospects of all the sectors of the economy. “Budget is not about figures written on papers but a reflection of social values. This Budget is reflects the comprehensive vision, foresight and dedication of Chief Minister for the overall development of the State,” he said.
The Finance Minister said that the budget has been prepared against the backdrop of overall economic slowdown gripping the Indian economy. “The economy is facing slowdown for the past one and a half years. As a result, there is reduction in tax devolution and other transfers to the State by the Centre, and decline in the growth of State revenues. There is an immediate need to keep up the growth momentum in the State. The tax devolution from Centre to the State is expected to be lower in 2019-20 by Rs. 3,731 crore as compared with the budget estimates. There are delays and shortfalls in the release of State’s share in Integrated Goods and Services Tax and GST compensation. Following the economic slowdown, the growth of the State’s own revenues in 2019-20 (till the end of February) is estimated to be at 6.3%, much below the growth of 16.1% achieved in 2018-19,” he said.
Further, he said that due to the recommendations of the Fifteenth Finance Commission, there will be a reduction in the share of Telangana in Central tax devolution from 2.437% to 2.133 % resulting in reduction of tax devolution by an amount of Rs. 2,384 crore in 2020-21. “Let me assure the Hon’ble Members that despite these adverse developments, which are beyond our control, the government is confident of overcoming the situation with appropriate strategies and keep up the growth momentum in the State,” he said.
As per the Advanced Estimates, Gross State Domestic Product (GSDP) in 2019-20 is estimated at Rs.9,69,604 crores, at current prices indicating a growth of 12.6% over the previous year. Because of the economic slowdown, there has been a slight decline in the growth of GSDP, in current prices, from 14.3 % in 2018-19 to 12.6% in 2019-20. However, the decline is much lower than that of the decline in national GDP growth from 11.2% to 7.5 % in the corresponding period. Thus, to a great extent, the State economy has withstood the shocks of the economic slowdown across the country and maintained a double digit growth rate, he claimed.
Agriculture and allied sectors have recorded an impressive growth in 2019-20. While the crop sector is estimated to grow at 23.7%, the livestock and fishing sectors are estimated to grow at 17.3% and 8.1% respectively. “This is ample proof that the initiatives taken by the Government in the agriculture and allied sectors like irrigation, loan waiver and Rythu Bandhu, sheep distribution and development of water bodies and fisheries have not only contributed to the farmers’ welfare but also contributed to the growth of the State economy. The services sector is estimated to grow at 14.1% in 2019-20 at current prices,” he said.
The Finance Minister informed that the per capita income of the State of Telangana was greater than the per capita income of our country. Per capita income for 2019-20 for Telangana is estimated at Rs.2,28,216/- whereas the per capita income of our country is Rs.1,35,050/-.The major allocations are Panchayat Raj & RR – 23,005 Cr; SC Welfare – 16,534.97 Cr; Municipal Administration – 14,809 Cr; Rythu Bandhu – 14,000 Cr; Housing – 11,917 Cr; Aasra Pension – 11,758 Cr; Drinking Water – 11,054 – Cr; School Education – 10,421 Cr; Energy – 10,416 Cr; Hyderabad Development – 10,000 Cr; ST Welfare – 9,771.27 Cr; Crop Loan Waiver – 6,225 – Cr; Health – 6,186 Cr; Police Administration – 5,852 Cr; Backward Classes Welfare – 4,356 Cr; Roads & Buildings – 3,494 Cr; Fee Reimbursement – 2,650 Cr; Indutrial Development – 1,998 Cr; Higher Education – 1,723.27 Cr; Animal Husbandry – 1,586.38 Cr; Minorities Welfare – 1,518.06 Cr; Industrial Infrastructure – 1,500 Cr; Kalyana Lakshmi – 1,350 Cr; Women SHGs – 1,200 Cr; Rythu Bima – 1,141 Cr; Market Intervention Fund – 1000 Cr; RTC – 1000 Cr; Drinking Water in 38 Municipalities – 800 Cr; Forest & Environment – 791 Cr; Collectorate, DPO, PCCC – 550 Cr; MBC Corporation – 500 Cr; Endowments Dept – 500 Cr; MLA, MLCs SDP – 480 Cr; Total Literacy Programme – 100 Cr.