Amid huge expectations and unprecedented secrecy surrounding the first ever budget for Telangana State, Finance Minister Etela Rajender will be presenting the budget for 2014-15 in the Legislature Assembly on Wednesday.
What has added to the anticipation like never before about the allocations to various key sectors is the deep involvement of Chief Minister K. Chandrasekhar Rao in the budget preparation process with clear cut instructions to department heads that the proposals should reflect government’s vision for the next four years giving equal focus to development and welfare programmes.
Though sources are reluctant to hazard a guess about the plan and non-plan allocations, expectations are that it can be around Rs.1 lakh crore.
Given the indications in the last couple of months, big thrust will be given to development - water grid project, particularly revival of thousands of minor irrigation tanks, Hyderabad water supply, strengthening of road and highway network, transport, modernisation of police department, allocations to tide over power crisis in the short term.
But more than whether the maiden Telangana budget would cross Rs.1 lakh crore mark or not like that of the neighbouring State, it is the process that was adopted for a goal-oriented and realistic budget by taking feedback from grass root level that generated the interest. Fourteen taskforce committees gave their reports on how to achieve set goals in next four years and ways to mobilise the needed resources.
The budget proposals focused on revenue mobilisation with an annual growth target of 15 to 20 per cent apart from open market borrowings to ground its ambitious programmes. The State so far borrowed Rs.2,800 crore and could raise Rs.6,000 crore more.
“This budget will be a reflection of priorities and promises made by the ruling party and major initiatives proposed by the government. It is a ‘Medium Term Expenditure Framework’ budget to indicate how much amount will be allocated over the next four years to these initiatives, more specifically for the next one-and-a-half years,” sources said.
The 2014-15 budget will be a precursor to the next year’s full-fledged budget and it has done away with adhocism that used to be part of budget preparation in the united State. A tight linkage between government priorities and budget allocation was established making it imperative for the departments to perform, they added.
The new feature will be rationalisation of about 1,200 schemes - of the Centre, State, NABARD and the externally aided schemes – to 750 schemes to enable the departments give better focus.
