Continuing its focus on welfare of weaker sections and development of agriculture and industries, Telangana Government on Wednesday unveiled Budget for 2015-16 with a total outlay of Rs.1,15,689 crore.
“It is not just a collection of numbers, but an expression of our values and aspirations,” Finance Minister Etela Rajender said about the revenue surplus budget that also pegs the fiscal deficit at Rs.16,969 crore. As a percentage of the GSDP, the fiscal deficit will be 3.49 per cent.
Non-plan expenditure up
The first full budget of Telangana – estimating a revenue surplus of Rs.531 crore – said the plan expenditure is Rs.52,383 crore, while the non-plan expenditure is estimated at Rs.63,306 crore. The increase in the non-plan expenditure, compared to 2014-15 budget presented in November last year, was mainly due to the increase in pay and allowances of Government employees.
The amount required for salaries and pensions in 2015-16 is Rs.22,889 crore, he said, hoping the employees will rededicate themselves for all-round development of Telangana.
Even while voicing concern at “severe constraints” in raising the plan outlay due to the less than expected tax devolution from the 14th Finance Commission and reduction in plan transfers from the Centre, Mr.Rajender reiterated that the TRS Government “will walk the talk”.
On a firm footing
The Finance Minister, whose speech lasted one hour, said that he was presenting the budget for 2015-16 with “much greater understanding and clarity” unlike the previous exercise that was prepared with numerous unknowns with regard to own revenue potential and Central assistance.
On the welfare schemes and allocation, he said the Government will intensify the scheme of land purchase and assigning three acres to the SC women with a provision of Rs.1,000 crore. “Upto end of January 2015, 1,132 acres of private land and 270 acres of Government land has been sanctioned covering 525 beneficiaries,” he added.
With regard to skill development of the SC youth, suitable training institutions are to be identified to not only impart technical skills but also help them with suitable placements. The total provision for welfare of the SC is Rs.5547.05 crore. Listing the allocations and schemes for the Scheduled Tribes, Backward Classes, and minorities, the Finance Minister said that there has been considerable reduction in the receipt of transfers from the Centre.
Lower Central assistance
“As compared with the Central plan assistance of Rs.11,781 crore projected in the State budget, the amount received till end of February 2015 is only Rs.4,147 crore, indicating a shortfall of Rs.7,634 crore. This is close to 65 per cent of the budgeted amount,” he said. Similar is the case with non-plan grants of Rs.9,939 crore budget in 2014-15, with the amount received till end of February being only Rs.1,346 crore. The shortfall in the receipt of non-plan grants is over 86 per cent, he said.
One of the major announcements and a reiteration of its commitment as well, is the allocation of Rs.4,250 crore for the proposed debt relief for farmers. The Government expects the debt relief will help revive private investment in agriculture. Drip irrigation will also be promoted with a provision of Rs.200 crore.
Industrial incentives
On industrial development, the Finance Minister said that the new industrial policy focussed on core manufacturing sectors and is expected to lead to production of high-quality goods at the most competitive prices. Thereby, it will help establish the ‘Made in Telangana-Made in India brand’ as a global recognition. An amount of Rs.973.74 crore is proposed towards payment of industrial incentives in 2015-16.
