The CM K Chandrashekar Rao led Telangana government presented its maiden budget with an outlay of over Rs 1 lakh crore in the Assembly today.
Etela Rajender, Finance Minister of Telangana state formed on June 2 this year, said in his budget speech that for the ten months of the financial year 2014-15, the Government proposes total expenditure of Rs 1,00,637.96 crore, of which the non-plan expenditure is estimated at Rs 51,989.49 crore and plan expenditure at Rs 48,648.47 crore.
“The estimated revenue surplus of the state is Rs 301.02 crore. The marginal revenue surplus is entirely on account of additional resource mobilisation proposed in the budget,” Rajender said during his address to the Assembly.
The fiscal deficit is estimated at Rs 17,398.72 crore. As a percentage of GSDP (gross state domestic product), the estimated fiscal deficit is 4.79 per cent, the minister said.
A total provision of Rs 6,500 crore is proposed for irrigation and command area development sector, while Rs 2,000 crore was allotted in the current year to establish a State Drinking Water Grid to provide protected and piped drinking water to every household in the state through a network of pipelines. The total project is estimated to cost the exchequer around Rs 25,000 crore.
The energy department was allotted Rs 3,241.90 crore under the non-plan expenditure, which includes a provision of Rs 3,000 crore towards power subsidy.
Rajender said as a token of gratitude, each of the 459 families of the martyrs (of Telangana) would be given a financial assistance of Rs 10 lakh and Rs 100 crore is proposed in the budget for this purpose.
“The growth of the state economy witnessed a sharp fall from an average of 10.5 per cent during the period 2005-10 to 4.5 per cent in 2012-13 owing to marked deceleration in the growth of industrial sector. Reversal of this trend requires massive infusion of investment funds into agriculture, industry and infrastructure sectors,” he said in his speech.
The major contributors to the GSDP are the services and the industry sectors contributing about 58 and 28 per cent, respectively.
The lack of momentum in the growth of industry sector is a matter of grave concern for the new state. The agriculture sector though contributes only 14 per cent to the GSDP, it supports nearly 50 per cent of the state’s population either directly or indirectly, he explained.
The minister said though the per capita income of the state is put at Rs 93,151 in 2013-14, there are wide variations across districts.