Ten Big Highlights of Telangana Budget
HYDERABAD: Finance Minister Eatala Rajender announced a whopping outlay of Rs. 1.15 lakh crore in the first full-fledged budget for Telangana. He has spared people from fresh taxes but these cannot be ruled out later to bridge the huge fiscal deficit of Rs. 16,969 crore in the 2015-16 budget. Here are ten highlights of his speech.
- Non-plan expenditure of Rs. 63, 306 crore and plan expenditure of Rs. 52,383 crore – a ratio of 54.72 % and 45.27 %.
- Fiscal deficit of Rs. 16,969 constitutes 3.49 per cent of Gross State Domestic Product (GSDP).
- A marginal revenue surplus of Rs. 531 crore – one of the few States to have a plus balance under this head.
- 14th Finance Commission has established that higher share of expenditure incurred in Andhra region of erstwhile AP was financed by revenues collected in Telangana.
- VAT collections remain subdued due to general stagnation in economic growth.
- Growth rate in 2014-15 likely to be 5.3 % against 4.1 per cent in 2012; expected to improve in 2015-16 due to improved economic environment at the national level.
- More emphasis on welfare of SCs, STs and BCs.
- Rs. 4,250 crore allocated in budget for debt relief to farmers and Rs. 2,083 crore for Mission Kakatiya to improve lakes.
- Telangana to be power surplus by 2018; Rs. 7,400 crore allocated for power sector.
- Rs. 416 crore for Hyderabad Metro Rail, Rs. 526 crore for Greater Hyderabad Municipal Corporation and Rs. 1,000 crore for Water Supply & Sewerage Board.