Taking a pragmatic view, the TRS government has chosen not to bank entirely on Central assistance and pinned hopes on devolution of Central taxes and its own tax and non-tax revenue to meet the budget expenditure for 2015-16.
Finance Minister Eatala Rajender said in his budget speech that the State managed to get only Rs. 5,493 crore as Central grant as opposed to its expectation of Rs. 21,721 crore. The budget, instead, is relying on increased devolution of taxes from the Central pool after the Modi government decided to accept the recommendations of the 14{+t}{+h}Finance Commission. The share of the State government from Central taxes is expected to rise from Rs. 9,749 crore to Rs. 12,823 crore. The State’s own tax base was sought to be expanded from Rs. 35,378 crore to Rs. 46,494 crore and non-tax revenue from Rs. 13,242 crore to Rs. 22,413 crore.
This year, collection of own tax and non-tax revenue was more or less on track with the exception of proceeds from value added tax which were subdued due to stagnation in economic growth. Moreover, the economic growth was expected to recover to 5.3 per cent from 4.1 per cent.
The Minister painted negative growth of 10.3 per cent in agriculture due to deficient rainfall but assured recovery of industry and services sectors which are the major contributors to GSDP. Land suitable for industrial use will be developed out of 20 lakh acres found unfit for cultivation. The government was committed to provide seven-hour power supply to 19.53 lakh agricultural pumpsets in the State.
The government will continue the welfare programmes – Mission Kakatiya, Water Grid, Kalyana Lakshmi and distribution of lands to Scheduled Castes – besides implementing social security pensions and tuition fee reimbursement. Significantly, no budget was earmarked for compulsory and free education from KG to PG which was allotted Rs. 25 crore for its rollout this year.
