Budget lacks clarity: Oppn

Hyderabad: The opposition parties feel that the Budget 2015-16 presented by Finance Minister Eatala Rajender lacks clarity. On one hand, the government claims that it is not getting its due share of devolution from the Centre, and on the other hand it claims that the budget would be tax-free. The Finance Minister has failed to explain how it would mobilise the revenue.The Deputy CLP leader in Legislative Council, Mohammed Ali Shabbir, described the Budget as unrealistic and completely hopeless. Shabbir said the figure of Rs 1,15,689 crore sounds good, but it is far from reality.

• Unrealistic, completely hopeless: Congress
• Mere jugglery of words: Left parties
• No thrust on KG to PG free education: BJP

He said that the government presented a similar budget of Rs 1,00,637 crore for the financial year 2014-15. But it did not spend even 50 per cent of the total allocations. The figure of more than Rs 1 lakh crore is being used only to mislead the people.Shabbir said that the Finance Minster did not explain the sources through which he plans to raise the amount to spend Rs 63,306 crore under Plan and Rs 52,383 crore under Non-Plan. He also ridiculed the claim that there is Rs 531 crore revenue surplus.

He said similar claim was made in 2014-15 of having a surplus of Rs 301 crore. He said that the Telangana got only 65% of funds under Plan and only 14% of amounts under Non-Plan towards Central Assistance. The Congress leader pointed out that the Finance Minister admitted that the agriculture sector had registered a negative growth of 10.30%. While the production of foodgrains reduced by 19%, oil seeds production dipped by 11%. Since Telangana is an agrarian State, this would have a multiplier impact on the entire economy.

However, these factors were completely ignored in the budget speech, he said. "At one side, the TRS government is describing Telangana as a revenue surplus State. On the other, it allocated only Rs 4,250 crore towards second installment of crop loan waiver scheme. Shabbir said the Chief Minister had assured in the Council in the past that they would carry forward the unspent amount of SC, ST, BC and Minorities allocations but the budget is silent on it.

BJP Floor Leader K Lakshman stated that the Telangana budget lacked clarity on both revenues and expenditure fronts. He said that the government did not spend even 40% of the last year's budget.He also disputed the claims that Telangana was the second wealthiest State after Gujarat. He said that the Finance Minister should have elaborated on the same in his speech.Lakshman said that while the government completely skipped mention of the farmers who committed suicide, the number of families of Telangana martyrs eligible for compensation has been reduced. The budget is also non-committal on the promise of KG to PG free education.

The Left parties described the budget as directionless and a jugglery of words.CPM MLA Sunnam Rajaiah and CPI legislator P Ravindra Kumar said that the Finance Minister was building castles in the air. He said that the focus in the budget was completely scattered and the key areas have been ignored. It is directionless, they said. However, TRS Parliamentary Secretary Srinivas Goud said Telangana described the budget as a pro-development and visionary budget for the new State.

Goud said that the TRS government was successful in presenting over Rs 1 lakh crore budget for the second consecutive year. He praised the allocations made for the development of Hyderabad and its suburbs. He said that the budget has sent a clear message that KCR wants to make Hyderabad a world-class city.

Govt of Telangana Finance Department Budget Estimates 2015-16

BE 2014-15 BE 2015-16

Total Expenditure 1,00,637.96 1,15,689.19

Non-plan expenditure 51,989.49 63,306.00

Plan expenditure 48,648.47 52,383.19

Total Revenue receipts 80,090.33 94,131.51

Share in Central Taxes 9,749.36 12,823.25

State’s Own Tax Revenue 35,378.24 46,494.75

of which:

- Sales Tax 26,963.30 35,463.39

- State Excise 2,823.54 3,916.43

- Taxes on Motor Vehicles 2,226.86 2,500.00

- Stamps and Registration 2,583.88 3,700.00

Non Tax Revenue 13,242.02 22,413.27

of which:

- Mines and Minerals 1,877.52 3,300.00

- Forests 79.91 125.00

- Contra Interest 2,508.98 2,696.38

- Regularisation of land

and additional resource 6,500.00 13,500.00

mobilisation

Grants from Centre 21,720.71 12,400.24

of Which:

- Centrally Assisted State Plan 11,781.25 6,497.24

- Compensation for loss of CST 1,500.00 1,500.00

- Finance Commission Grants 3,139.46 1,153.00

- Other grants 5,300.00 3,250.00

Total Expenditure 1,00,637.96 1,15,689.19

Revenue expenditure 79,789.31 93,600.21

Capital Expenditure 15,101.19 15,982.51

Loans and Advances 2,673.11 2,392.10

Capital Disbursements 3,074.35 3,714.37

Revenue Surplus 301.02 531.30

Fiscal Deficit -17,398.72 -16,968.75

GSDP 4,30,599 4,86,577

Fiscal Deficit as % of GSDP -4.04 -3.49