State may re-prioritise its spending

Full-fledged budget to be presented in September

Telangana may look at re-prioritising allocations to various sectors in its full-fledged budget for 2019-20 to be presented in the Budget session likely to be convened in the second week of September or even earlier given the signals of economic slowdown.

All departments have been asked to send their budgetary proposals for the current fiscal to finalise them and present the full-fledged budget in September. Priority will be for implementation of ongoing schemes and welfare schemes like Rythu Bandhu.

The Rythu Bandhu disbursals for kharif, is reported to have been slow and intermittent with about 10 lakh farmers still awaiting the amount.

Irrigation priority

The lion’s share of budgetary allocation would again go to the irrigation sector, sources said. The Kaleswharam Lift Irrigation Project which would take at least two more years to be completed and other irrigation projects would continue to get the priority in allocation of funds.

Another flagship project, Mission Bhagiratha — piped drinking water scheme to all households in the State — implemented by raising loan is almost complete with only the last mile connectivity to be given.

Telangana is among the States with impressive GST revenue growth at over 17% till July this fiscal but the first indication of revenue shortfall came with the Union government revising the estimated Central tax devolution to the State. With the growth rate of Indian economy revised downwards recently, the Central tax devolution to the State has been decreased by ₹863 crore.

Economic slowdown

Sources said that several parameters have been indicating to the slowdown of national economy — exports and industrial production is stagnating with no green shoots anywhere. The rate of growth in bank deposits also came down. The saving grace has been good monsoon that revived to bring timely rains to help paddy transplantation, the major crop in the State. The agricultural production this year should be good.

Telangana State revenue may not be adversely impacted even with the negative outlook for the national economy, particularly in the automobile sector as the motor vehicle tax was not a major source of tax revenue for the State.

The consumption based tax that forms the major tax revenue component hopefully will not be hit, sources said.

The revenue from the Stamps and Registration continued to be buoyant with the value of land in Hyderabad and surrounding areas almost doubled.

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Printable version | Feb 19, 2020 7:14:56 AM |

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