Eatala presents Rs. 1.74 Lakh Cr budget for 2018-19

Hyderabad: Finance Minister Eatala Rajender on Thursday presented Rs 1.74 lakh crore budget for the year 2018-19 for Telangana State.

The estimated total expenditure in 2018-19 is Rs. 1,74,453.84 crore. Of this, revenue expenditure is Rs. 1,25,454.70 crore and capital expenditure is Rs. 33,369.10 crore. "The capital expenditure is 19% age of total expenditure. This is substantially higher when compared to other States," the Finance Minister said while presenting his fifth consecutive budget in Telangana Legislative Assembly today.

Stating that the capital expenditure incurred in the combined State during 2013-14 was Rs.15,280 crore only, he said that the capital expenditure has increased substantially in Telangana.

In the Budget Estimates for 2018-19, State’s own revenue receipts are proposed at Rs. 73,751.88 crore. When compared with the Revised Estimated (RE) 2017-18, this is higher by 20% . Transfers from the Centre as per BE 2017-18 is Rs. 26,857.67 crore, while in BE 2018-19 these are estimated at Rs. 29,041.88 crore. This increase is marginal, he said.

Etala said that the Corporations implementing government programmes are accessing funds through off-budget borrowings. Therefore, the total expenditure would be much higher than that proposed in the Budget. In 2018-19 the estimated revenue surplus is Rs. 5,520.41 crore and fiscal deficit is Rs. 29,077.07 crore. The fiscal deficit is 3.45% of GSDP.

"We have crossed a number of milestones in fulfilment of the aspirations of people. Within a short period of 45 months, we have achieved significant and noteworthy development in a number of areas. We have moved from darkness to light, from despondency to self-confidence, from deprivation to development and from migration to agricultural development.

The formulation of the fifth Budget of the State is in continuation of this journey and reflects the commitment of Chief Minister K. Chandrashekhar Rao that welfare and development programmes should benefit the poor," Eatala said.

The growth at constant prices improved from 5.4% in 2013-14 to 6.8% in 2014-15 and this improvement continued in all the succeeding years. The growth rates in 2015-16 and 2016-17 were 8.6% and 10.1% respectively. During the current year 2017-18, the economy of Telangana is estimated to grow at 10.4% in real terms as compared with the national GDP growth of 6.6%.

"Telangana achieved a double-digit growth bucking the national trend, despite the adverse short term to medium term impact of demonetisation and the teething problems following the introduction of GST," he said.

He said that the manufacturing sector, which had been registering negative growth rates in the Telangana region of the combined State, has turned around because of the significant improvement in the power situation and investor friendly investment policies and achieved a growth of 6.4% in 2015-16. This improved further to 7.4% in the year 2016-17.

Advance estimates put the growth of manufacturing sector at 7.6% in 2017-18. "Because of the significant improvement in power situation and augmentation of irrigation facilities, agricultural growth is promising. The growth of agriculture and allied sectors is estimated to reach 6.9% in 2017-18.

With improvement of irrigation as a result of projects and renovation of tanks, 24 hour uninterrupted power supply and optimum utilization of ground water, there is likely to be further improvement in agriculture sector in 2018-19. Let us all pray for a timely and normal rainfall," he said.

The minister informed that overall, GSDP at current prices which was Rs. 6,41,985 crore last year (2016-17) is estimated to increase to Rs. 7,32,657 crore in 2017-18, recording a growth of 14.1%. The per capita income of the State at current prices is estimated to increase by 13.4% from Rs.1,54,734 in 2016-17 to Rs. 1,75,534 in 2017-18. This is significantly higher than the national growth of 8.6%.

"If we observe the situation before and after the formation of the State, the progress is crystal clear. This was possible only because of the perceptible improvement in the formulation of innovative growth and welfare enhancing policies and their proper implementation.

The progress is the result of formulation of appropriate policies after proper assessment of resources and needs of people. The same principles have been followed in the preparation of the Budget for 2018-19," he said.

The major allocations made for flagship schemes in the budget include Irrigation - Rs. 25,000 Cr; Investment Support Scheme to Farmers - Rs. 12,000 Cr; Aasara - Rs. 5,366 Cr; Power Subsidy - Rs. 4,984 Cr; Scholarships - Rs. 3,282; Rice Subsidy - Rs. 2,744 Cr; Mission Bhagiradha - Rs. 1,803 Cr; Economic Support Scheme - Rs. 1,682 Cr; SFC Grants to Panchayat Raj Bodies - Rs. 1500 Cr; Two Bed Room House - Rs. 1500 Cr; Kalyana Lakshmi & Shaadi Mubarak - Rs. 1,450 Cr;

Assistance to Weavers - Rs. 1200 Cr; SFC Grants to Urban Local Bodies - Rs. 1,000 Cr; MBC Corporation - Rs. 1,000 Cr; TSRTC - 975 Cr; Vaddileni Runalu - Rs. 930 Cr; Hyderabad Roads - Rs. 750 Cr; Municipal Corproations - Rs. 700 Cr; Aarogya Sri - Rs. 699 Cr; KCR Kit - Rs. 560 Cr and Farmer Mechanisation - Rs. 522 Cr.

An amount of Rs. 16,453 Cr has been allocated for Scheduled Caste Development Fund; Rs. 9,693 Cr for ST SDF; Rs. 5,920 Cr for BC Welfare; Rs. 2,000 Cr for Minorities Welfare; Rs. 10,830 Cr for School Education; Rs. 2,448 Cr for Higher Education and Rs. 2,823 for Residential Schools and Rs. 5,650 Cr for Power Sector.