Telangana Budget 2021: Here's what you need to know of the Rs 2,30,825 cr budget
Hyderabad: Telangana state on Thursday unveiled a Rs 2,30,825.66 crore budget for the financial year 2021-22. Presented by finance minister T Harish Rao, this is the largest annual budget for the state since its formation in 2014 as well as for the erstwhile united Andhra Pradesh.
Once passed, the funds allocated in the Budget will be released for various departments from April 1.
A sum of Rs 1,69,383.44 crore is earmarked for revenue expenditure and Rs 29,046.77 crore for capital expenditure to build assets. The minister estimated that Telangana will see a revenue surplus of Rs 6,743.50 crore. The estimated fiscal deficit, he said, is of Rs 45,509.60 crore.
“It is evident that Telangana has emerged as a major economic power,” Harish Rao said and stated that Chief Minister K. Chandrashekar Rao had stressed the state to safety and progress even during the trying Covid times. He also praised the CM for his leadership skills that has placed Telangana “on the firm path of development and public welfare”.
Harish Rao said the Chief Minister’s foresight and decisions stimulated the rural economy, helping the state limit the adverse impact of Covid-19. Round-the-clock power supply, increased irrigation and new welfare schemes helped the primary sector record a growth of 17.7 per cent in 2020-21, he said.
As per advance estimates, the Gross State Domestic Product (GSDP) at current prices is estimated at Rs 9,78,373 crore. The adverse impact of the lockdown reducing the GSDP growth from 13.5 per cent in 2019-20 to 1.3 per cent in 2020-21.
Compred to this, the national GDP growth declined from 7.8 per cent to -3.8 per cent in the same period, he noted.
On the per capita income front too, the state has done better than the nation, he said, adding in Telangana this is estimated to increase by 0.6 per cent in 2020-21 to Rs 2,27,145. The per capita income at national level is estimated to decline by 4.8 per cent to Rs 1,27,768. This, Harish Rao said, was proof that Telangana’s economy “is in a better shape” despite the adverse situation.
The finance minister, in his one-and-a-half hour budget presentation, referred to the successes the state achieved on various fronts, be it in irrigation, power supply, industries or the IT sector. This coming year, he said, programmes such as completing construction of two bedroom houses and expanding tourism to Kaleshwaram irrigation project will be taken up.
Harish Rao said the government’s goal was welfare of all people and “our objective is to realise ‘Bangaru Telangana’ with the participation and co-operation of all people.”
He said Chandrashekar Rao had put the chariot of progress on a fast track. “Preserving the rich heritage of Telangana, let us march forward unitedly. We should ensure that the benefits of development reach the poorest of the poor,” he said.
Harish Rao created record during the presentation of Budget 2021-22 in the Legislative Assembly on Thursday as he became the first finance minister to present a Rs 2 lakh-crore budget in the Assembly. The Budget of Rs 2.3 lakh crore that he presented was the highest ever; in undivided AP, finance minister Anam Ramanarayana Reddy presented an Rs1.83-lakh crore Budget in 2014.
Harish Rao’s budget speech of 84 pages lasted 96 minutes, a record for its length. The previous record holder was then finance minister Etala Rajendar with a 78-minute speech in 2018.
The customary press conference of the finance minister after the Budget presentation was cancelled owning to Covid restrictions.
TS debt burden rises, faced revenue deficit for two straight years
The state government's overall debt burden would increase to Rs 2.86 lakh crore as per Budget 2021-22 tabled in the Assembly on Thursday. Of this, open market loans account for Rs 2.44 lakh crore.
The budget proposes to raise Rs 47,500 crore through market borrowing against Rs 43,784 crore last year. The government needs to pay Rs 17,584 crore this year towards interest while it was Rs 14,615 crore last year.
Doctors allege neglect of health care sector
Doctors complain that the cause of development of Osmania General Hospital, including construction of new buildings and improvement of infrastructure, has been neglected by the state government.
Legislators hail hike in constituency development fund
Each legislator and MLC will get Rs 5 crore as Constituency Development Fund (CDF) in the upcoming financial year year, in Budget 2021-22. The sum was Rs 3 crore last year.
Accordingly, the budgetary allocation has been increased from Rs 480 crore last year to Rs 800 crore.
Rs 1,602 cr provided for minorities
The state government has provided Rs 1,602 crore (Rs 1,513 crore in 2020-21) for minorities in the Budget of which two-thirds has been marked for education and academics. No new schemes were introduced for the minorities on Thursday.
Telangana relying heavily on taxes, income through sale of land to fund Budget
The government is relying heavily on its own tax revenues, loans and sale of land to fund the largest-ever Rs 2.3 lakh-crore Budget presented on Thursday.
The government plans to raise market value of land to increase revenue earnings besides selling government land parcels, HMDA land parcels and lands and flats owned by Rajiv Swagruha Corporation.
Emigrants seek establishing Gulf Board with Rs 500 crore
The Emigrants Welfare Forum has appealed for the establishment of a Telangana Gulf Workers Welfare Board (Gulf Board) with a budget of Rs 500 crore to benefit people from the state working in more than 18 countries.
While presenting the Budget, finance minister T. Harish Rao said the government had decided to put in place an administrative arrangement on the lines of Kerala for the welfare of workers who had gone to the Gulf countries for livelihood.
A facelift to government schools
The Telangana state Budget for 2021-22 has thrown up some surprises as well as new schemes.
The new schemes include giving Rs 4,000 crore for upgradation of government schools, Rs 1,000 for CM Dalit empowerment programme and extending Rs 30,000 per acre incentive for cultivation of oil palm.
Budget allocation to Telangana police department increased by Rs 613 crore
Finance minister T. Harish Rao allocated Rs 6,465 crore to the police, an increase of Rs 613 crore over the previous year. He allocated Rs 725 crore for the construction of the the police command control centre. The intelligence department got Rs 30 crore more, from Rs 11.02 crore last year to Rs 41.16 crore proposed in the state Budget on Thursday.
Rs 1,602 cr provided for minorities
The state government has provided Rs 1,602 crore (Rs 1,513 crore in 2020-21) for minorities in the Budget of which two-thirds has been marked for education and academics. No new schemes were introduced for the minorities on Thursday.
