The budget expenditure for 2018-19 presented by Telangana government is unrealistic, impractical and given its mounting borrowings, the State is certain to be pushed into a debt trap, said BJP member N. Ramachandra Rao.
Initiating general discussion on the Budget in the Legislative Council here on Monday, Mr. Ramachandra Rao said the budget, even with a massive outlay of ₹ 1,74, 482 crore, failed to give clarity on how effective and practical the budget expenditure would be and how much additional burden it would pose on people. The government might argue that its per capita income was high, but its per capita debt burden was also rising alarmingly. Telangana began as a surplus revenue State but within four years its debt burden has crossed ₹1.8 lakh crore. It failed to spend over ₹ 8,000 crore on capital expenditure in the current fiscal. The loan repayment amount was also huge, yet it showed the budget of 2018-19 with a revenue surplus of ₹ 5,520 crore. “It is nothing but jugglery of statistics,” he said.
It was normal for any State and Centre to borrow for productive expenditure, but it should be in proportion to the actual revenue receipts and expenditure. But the way Telangana State had been borrowing was worrisome, he said, and demanded a white paper on how much amount was spent on capital investment. “You are pushing a rich State to become debt-ridden,” he told the Treasury benches.
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The BJP member, however, appreciated the government for doubling the allocation to agriculture sector in 2018-19 over that of last year but said enough allocations were not made for education and health sectors.