Telangana Finance Minister T. Harish Rao has presented a huge, ₹ 1.82-lakh crore tax-free, budget for the financial year 2020-21, with a people-centric approach in the Legislative Assembly here on Sunday.
Coming in the backdrop of the economic challenges faced by the country and the State, the budget has projected revenue expenditure at ₹ 1.38 lakh crore, and a capital expenditure of ₹ 22,061 crore. The annual financial statement estimated a revenue surplus of ₹4,482.12 crore, while the fiscal deficit is pegged at ₹ 33,191.25 crore. Mr. Harish Rao asserted that there was no reduction in the funds pertaining to welfare schemes. In fact, the government took a decision to increase the beneficiaries under different welfare schemes.
Agri and welfare sectors get big bucks
According to the projections made for different departments, the budget apparently weighed heavily towards agriculture and welfare sectors with ₹ 14,000 crore allocated for Rythu Bandhu , the farmers’ investment support scheme, and another ₹ 6,225 crore towards implementing the TRS’ election promise of a loan waiver. The Panchayat Raj Department, which saw a new legislation enacted for its effective functioning at the grass roots, was given lion’s share of ₹ 23,005 crore while the Municipal Administration Department too got in excess of ₹ 14,800 crore, while the Home Department was allocated ₹ 5,852 crore.
The government’s intent on enhancing the coverage of financial assistance to different vulnerable groups through social welfare pensions was evident from the ₹ 11,758 crore allotted for Aasara pensions which would soon see a reduction of age limit from the present 63 years to 57 to become eligible as beneficiaries. The heavy accent on welfare could also be seen from the ₹ 16,534 crore allocated to Scheduled Castes Special Development Fund and ₹ 9,771.27 crore for Scheduled Tribes Special Development Fund.
₹ 10k crore for Musi projects
The twin cities got a major boost with the announcement of ₹ 10,000 crore for Musi Purification and Musi River Front projects. “The allocation was made as the government estimated that ₹ 50,000 crore would be required in the next five years for transforming the city into international levels,” Mr. Harish Rao said.
In the over one-hour presentation, Mr. Harish Rao said the State was better placed than others in the backdrop of the economic recession. The State’s own revenue average growth rate was 21.5 per cent for the past five years, and this had come down to 6.3 per cent this fiscal upto February, a 15.2 per cent decline. Keeping track of changed economic conditions, the government was preparing suitable strategic economic plans to address contingencies arising from time to time.
On sale: Housing Board and Rajiv Swagruha assets
Given the development of real estate as a major industry, the government had decided to sell non-performing assets held by institutions like the Housing Board and Rajiv Swagruha in a transparent manner to raise resources. “The budget was prepared in the backdrop of an economic slowdown gripping the country since the past one-and-a-half years resulting in reduction in tax devolution, and other transfers from the Centre as well as decline in the growth of State revenues,” the Finance Minister said.
Tax devolution from the Centre was expected to be lower by ₹3,731 crore during 2019-20 and there were also shortfalls in the release of the State’s share in the IGST and GST compensation. In the light of the economic slowdown, the growth of State’s own revenues in 2019-20 was estimated to be 6.3 per cent till February, much below the 16.1 per cent achieved in 2018-19. On top of this was reduction of the State’s share in Central tax devolution from 2.437 per cent to 2.133 per cent following the recommendations of the 15th Finance Commission.
