Fiscal deficit of Rs. 17,400 cr. in maiden TS budget

Finance Minister Eatala Rajender on Wednesday presented the maiden budget of Telangana to the State Assembly with an outlay of Rs. 1,00,637 crore that included non-plan expenditure of Rs. 51,989 crore and plan expenditure of Rs. 48,648 crore.

The budget for the 10-month period since the formation of the State on June 2 is Rs 11,824 crore less than that of Andhra Pradesh and Rs. 61,348 crore less than that of the combined State in 2013-14.

The revenue surplus was estimated at Rs. 301 crore, while the fiscal deficit (expenditure in excess of revenue) was Rs.17,398 crore, which was 4.79 per cent of the Gross State Domestic Product (GSDP). Services and industries sectors contribute 58 and 28 per cent, respectively, to the GSDP. The lack of momentum in the growth of industry sector was a matter of grave concern for the new State, Mr. Rajender noted.

Flagship schemes As Mr Rajender was about to conclude presentation of the budget, Opposition members from the Congress, TDP and BJP began filing out of the House.

The government’s flagship programmes that were reflected in the budget included revival of 45,000 irrigation tanks, which would get Rs. 2,000 crore this year. About 9,000 tanks were proposed to be restored in the first phase of the programme. All the four ongoing lift irrigation schemes – Nettempad, Kalwakurthi, Bheema andd Koilsagar – in Mahbubnagar will be completed in the year to irrigate 2.97 lakh acres. The government allocated Rs. 6,500 crore for these projects.

Another flagship programme of the TRS, the water grid, that would address drinking water needs of people, particularly in the tribal areas of Adilabad and flourosis-affected Nalgonda, got an allocation of Rs 2,000 crore this year. The mammoth project is estimated to cost Rs. 25,000 crore.

Farm interventions The government announced a market intervention fund of Rs 400 crore to ensure remunerative price to farmers and another Rs 100 crore for farm mechanisation.

Among the welfare programmes, the government provided Rs 1,000 crore for land purchase scheme for SCs which was launched in August and Rs 245 crore for educational institutions in tribal areas. Backward Class and minorities welfare was allotted Rs. 2,022 crore and Rs. 501 crore, respectively. A token sum of Rs. 25 crore was allotted to roll out the ambitious compulsory and free education from KG to PG.

To bail out the distressed power sector, the government provided Rs. 1,000 crore towards investments in TS Genco under the State plan. Another Rs. 3,242 crore was provided to the sector under non-plan, including a subsidy of Rs. 3,000 crore.

Earlier, the State Cabinet approved the budget.