Despite the adverse economic environment, there were no cuts in funds for welfare schemes.
Old age pensions for all eligible people above 57 years of age, initiation of a special action plan shortly to diagnose ear, nose, throat and dental diseases on the lines of Kanti Velugu, and medical tests covering every citizen and creation of a Telangana Health profile were among the scemes announced by Finance Minister T Harish Rao in the Telangana Legislative Assembly today as part of the budget for 2020-21.
The minister presented a budget proposing Rs 1,82,914.42 crore of expenditure. Of this the revenue expenditure was pegged at Rs 1,38,669.82 crore and capital expenditure at Rs 22,061.18 crore.
A surplus in the budget estimates of Rs 4,482 crore was estimated, as was a fiscal deficit of Rs 33,191.25 crore.
The minister said that as per the revised estimates of 2019-20, the total expenditure was estimated at Rs 1,42,152.28 crores - revenue expenditure of Rs 1,10,824.77 crore and capital expenditure of Rs 13,165.72 crore.
He claimed that was a purely progressive budget prepared with a people-centric approach. He added that even though this budget was only for one year, it was part of a strategic plan for four years.
Rao said that the budget had been prepared against the backdrop of the overall economic slowdown gripping the Indian economy as a result of which there was a reduction in the tax devolution and other transfers to the state by the Centre, as also a decline in the growth of the state's revenues. The tax devolution from the Centre to the state was expected to be lower in 2019-20 by Rs 3,731 crore, and the growth of the state's own revenues in 2019-20 (till the end of February) was estimated to be 6.3%, much below the growth of 16.1% achieved in 2018-19.
Rao, however, assured the members that despite these adverse developments, the government was confident of overcoming the situation with appropriate strategies and keeping the growth momentum in the state intact. He said that there was no reduction in the funds for welfare schemes, and that proposals were in fact made to increase the number of beneficiaries of the schemes. The antidote to the economic recession was enhancing the people's purchasing power, and by giving top priority to welfare, the government was enhancing the money in the hands of the people, he claimed. The government was achieving economic development through a dual strategy of enhancing the people's purchasing power and spending on capital expenditure, he said.
Rao also announced that the government had decided to fix the Constituency Development Fund at Rs 3 crore for every MLA and MLC. The government would shortly release the guidelines in this regard, he said. "A sum of Rs 480 crore is proposed in the Budget for MLAs and MLCs Assembly constituency funds," he said.
The minister said that the remaining five kilometers of the first phase of the Hyderabad Metro that would cover the Old City would be completed at the earliest. The second phase of the Metro would see stretches from Rayadurgam to Shamshabad and from BHEL to Lakdi ka Pul, and plans were being formulated for those, he said.