The fiscal deficit is estimated at Rs. 16,969 crores. As a percentage of GSDP, the estimated fiscal deficit is 3.49%.
Finance Minister Etela Rajender presented a surplus and tax-free budget of Rs. 1,15,689 crores for Telangana for the financial year 2015-16, in the State Legislative Assembly on Wednesday.
The budget expenditure includes Rs. 63,306 crores under Non-Plan and Rs. 52,383 crores under Plan. The estimated revenue surplus is Rs. 531 crores.
The fiscal deficit is estimated at Rs. 16,969 crores. As a percentage of GSDP, the estimated fiscal deficit is 3.49%.
"The increase in non-plan expenditure as compared with 2014-15 is mainly on account of the increased pay and allowances for government employees. The government has faced severe constraints in raising the Plan outlay in 2015-16 mainly on account of less than expected tax devolution from the award of the 14th Finance Commission, and reduction in plan transfers from the Centre," Etela said while presenting the first full-fledged budget of Telangana.
The estimated tax devolution to the State is only Rs. 12,823 crores in 2015-16. Consequently, plan grants to the State from the Centre are budgeted at Rs. 6,497 crores in 2015-16 compared with Rs. 11,781 crores in 2014-15.
"But for the reduction in Central transfers, our government would have proposed a higher plan outlay," Etela said.
"It is ironical that while the Centre has budgeted for a fiscal deficit of 3.9% of GDP in 2015-16, the states are being asked to adhere to the limit of 3% of GSDP. Though the Finance Commission has recommended an additional borrowing limit of 0.5% of the GSDP upon fulfilling certain conditions, no decision has been taken yet by the Union Government on this recommendation," Etela said.
The Finance Minister said that the growth of the state economy had been witnessing deceleration since 2011-12. From a double digit average annual growth of 12.87% in constant prices in the years 2004-09, growth had slipped to 4.1% in 2012-13. However, as per the advance estimates, growth is expected to recover to 5.3% in the current financial year 2014-15.
Etela informed that delayed monsoon and deficient rainfall had reduced the agricultural output by 10.3%. However, the growth rate in the service sector had increased from 5.9% in 2013-14 to 9.7% in 2014-15. Likewise, the industry sector had registered a growth from 0.1% to 4.1%.
"The welfare of the people and the all-round development of Telangana are the guiding principles of the state's policies. Going by these principles, the government has identified three priority areas - welfare of the weaker sections; agriculture and allied sectors; and development of the industrial sector. These are the three tenets of our policy," the Finance Minister said.
The Finance Minister allocated an amount of Rs. 4,250 crores towards the payment of the second installment of the crop loan waiver scheme. The total provision for agriculture and allied sectors stands at Rs. 8,432 crores. While Rs. 1,000 crores has been allocated for purchase of land to be distributed among poor dalits, the allocations for welfare are: SC welfare - Rs. 5,547.05 crores; ST welfare - Rs. 2,878 crores; SC sub-plan - Rs. 8,089 crores; ST sub-plan - Rs. 5,036 crores; BC welfare - Rs. 2,172 crores; minorities welfare - Rs. 1,105 crores; women's welfare - Rs. 771 crores (under ICDS scheme); Aasra pensions - Rs. 4,000 crores; beedi workers - Rs. 188 crores; food security and subsidy - Rs. 2,200 crores; employees' welfare - Rs. 22,889 crores; industrial incentives - Rs. 973.74 crores; and energy - Rs. 7,400 crores.
The other major allocations include: Mission Kakatiya - Rs. 8,500 crores; road development - rs. 2,421 crores; water grid - Rs. 4,000 crores; health - Rs. 4,932 crores; and education - Rs. 11,216 crores.
Stating that he was presenting this year's budget with more understanding and clarity, Etela said, "Budget is not just a collection of numbers, but an expression of our values and aspirations. Budget is a means for realising the aspirations of people. Using the public money prudently for the welfare of the people is the sacred and non-negotiable duty of the government. I want to inform the House that this budget is an action plan for promoting the welfare of the people of Telangana.". (INN)