A tightrope walk

Most householders are aware of the difficulties faced in preparing, and more so, sticking to their individual budgets. In case of any exigency in the family, the situation becomes further critical needing extra efforts and resources. Based on individual experiences, one can imagine the extent of complexities involved in putting together a state budget. It is, indeed, a tightrope walking taking adequate care of every sector and every section of society.

As the entire world reeled under Covid causing major economic and social disruption, the global economy significantly slowed down. Telangana also suffered but managed to put its acts together. At this stage, it is imperative to boot strap the economy. Towards this end the jumbo budget of Rs 230,825.96 crore for FY 2021-22 presented by the Finance Minister, Harish Rao can be categorised as a bold and creative one.

What is proposed under this budget? Efficacy of every budget depends on accurate assessment of factors namely, 'expectations of people', 'estimations of available resources' and 'intentions of the government'. Optimisation among these factors results into inter se allocation of resources for various sectors. In so far as expectations of people are concerned, they are ever growing and must be fulfilled by welfare measures. In these difficult times welfare of people cannot be ignored. That is precisely done in the budget leaving with comparatively lesser resources for economic development.

Added to the slowdown is the uncertainty of garnering resources due to various external and internal factors. These have direct impact on the one hand, on the receipts to the State from Government of India, and collection of State's own resources. On the other hand, unavoidable commitments such as extending additional fitment to government employees and pensioners duly considering recommendations of the pay revision committee towards salary and pensions, and other ongoing welfare measures have further squeezed the scope of any manoeuvrability.

In so far as intentions of the government are concerned, CM, KCR had a steely resolve to change the face of the Telangana, especially rural areas by providing drinking water to every household and irrigation to every field. Even at the cost of reduced allocations to several other sectors, TRS government has continued to provide importance to water sector. In fact, in the recent past, the water sector budget of Telangana State was higher than that of the Ministry of Jal Shakti at the national level. His gamble seems to have been paying off. Telangana has successfully created a grid both for irrigation and drinking water. Depending on the requirement at a place, water can be transferred from one surplus part of the state to another deficit part. This kind of infrastructure perhaps, is not available anywhere in the country. Many developed countries do not even have this kind of infrastructure.

Due to sufficient availability of water, Telangana State is likely to achieve the highest ever production of agricultural crops of 4.11 crore MT for the year 2020-21 as against 1.41 crore MT immediately after formation of the State in the year 2014—15. The total gross area under cultivation has increased from 141 lakh acres to 212 lakh acres during the corresponding period.

Thanks to the hard work of the farmers and sustained support of the State Government, Telangana had successfully tackled the unprecedented disruption. The Budget reaffirms that farmers will continue to get Rs.10,000 per acre for two crops under Rytu Bandhu Scheme (Rs.14,800 crore). Other farmer oriented schemes namely, loan waiver (Rs.5225 crore), Rytu Bima (Rs 1200 crore), dairy development (Rs 1730 crore) in the current budget makes Telangana as the farmer friendliest state in the country. Kudos to the long-term vision of the leadership in the state. With the state economy bouncing back in the last three months, the most heartening point being that revenue earnings from all the sectors have almost reached the pre-Covid levels, this budget will further provide enabling environment for development. Telangana seems to have withstood the storm as reflected by the increase in State Gross Domestic Product (SGDP) from Rs.9.6 lakh crore in the previous year to Rs.9.78 lakh crore for the financial year 2021.

The economy was also managed efficiently by pegging expenditures at Rs.1.83 lakh crore as against revenue of Rs.1.43 lakh crore (leaving a deficit of Rs 33,191 crore that is roughly 3% of gross state domestic product) during the year 2020—21. People are aware that Harish Rao is a good cricketer providing strength to team KCR, but this budget has also proved that he is an equally adept trapeze artist who can achieve multiple objectives.

(The author is a former Chief Secretary, Government of Telangana)