Telangana Rashtra Samithi Government in its first full fledged Budget for the year 2015-16 has proposed expenditure of Rs1,15,689 crore, including a non-Plan expenditure of Rs63,306 crore. Reflecting the robust fiscal health of the State, the Budget has an estimated revenue surplus of Rs531 crore. The Budget projected fiscal deficit at Rs16,969 crore, 3.49 per cent of the GSDP.
Telangana Finance Minister Etela Rajender, who presented the Budget in the State Assembly on Wednesday, said that people's welfare was the highest priority of his Government. Journey to achieve "Bangaru" (Golden) Telangana has begun and there is no looking back till the goal is achieved, he said.
But he rued less than expected tax devolution from the Center. "The Government has faced severe constraints in raising the plan outlay in 2015-16 on account of less than expected tax devolution from the award of the 14th Finance Commission and the reduction in plan transfer from the Center", he said.
Finance Minster said that the grants from the Central Government had reduced drastically. During 2014-15, of the expected planned devolution of Rs11,781 crore, only Rs4,147 crore was received till February this year. Of the non-planned devolution of Rs9,939 crore only Rs1,346 crore was received.
laying equal emphasis on development and welfare, the Budget announced many initiatives, including a new industrial corridor between Hyderabad and Warangal for the industrial development in the State as well as sops for farmers and weaker sections. The Budget has made a total allocation of Rs8,432 crore towards agriculture and allied sector including Rs250 crore for greenhouse farming.
To overcome the electricity shortage, he said steps were being taken to make the State power surplus by 2018. He said the present power generation capacity will be increased to 23,675 MW from the present 4,320 MW by the end of 2018.
The Budget allocated Rs4,250 crore for the farm loan waiver scheme. This is second consecutive Budget allocation towards the loan waiver to repay the total bank debt of Rs19,000 crore. "With this we expect the farmers to get fresh loans from institutional sources", the Finance Minister said.
Another boost for the agriculture sector was introduction of e-auction of agricultural products at 12 market yards. "Based on the recommendation of panel on Agriculture Marketing Reforms we have introduced the system in Warangal, Khammam and Nizamabad market. We would like to extend the system to 12 more major market yards in the State", Rajender said.
The major budgetary allocations were Rs2,083 crore for Mission Kakatiya, a programme for reviving the irrigation tanks in the State, Rs8,500 crore for irrigation, Rs4,000 crore for drinking water grid, Rs7,400 crore for the power sector, Rs8,432 for agriculture and allied sector, Rs4,932 crore for health and Rs11,216 crore for education. Rs8,089 crore and Rs5,036 crore for SC and ST Sub-Plans respectively
On the welfare front, the Government has allocated Rs1,105 crore for minorities, Rs2,172 crore for the backward classes. Describing the food security for the poor as one the main aims of his Government, the Finance Minister allocated Rs2,200 crore for food security and subsidy, Rs4,000 crore for social security pensions to the aged, windows and physically disabled. The Minister also announced Rs1 per kg scheme with 6 kg rice per family benefiting 2.8 crore families.
Fulfilling a big election promise, he announced Rs1,000 financial assistance to the eligible beedi workers and allocated Rs188 crore for the scheme. The Government will be spending Rs22,889 crore on the salaries and pensions of the Government employees.