A Revenue Surplus budget in a row

Telangana government presented a tax-free Budget for 2016-17, proposing a total expenditure of Rs 1,30,415.87 crore, over 13 percent higher than the previous year, even as the allocations reflected the efforts of the government to strike a fine balance between development and welfare.

The plan expenditure is pegged at Rs. 67,630.73 crore, in an unprecedented manner, the proposed expenditure under Plan is higher than that under Non-Plan and this has been done without compromising on non-plan commitments by a combination of rationalization of expenditure and resource augmentation.

The higher revenue surplus is for the next fiscal is pegged at Rs.3,718.37 crore, this is due to on account of the proposed allocation of Rs.25,000 crore to the irrigation sector, which is mostly capital and fiscal deficit at Rs.23,467.29 crore, constituting 3.5 percent of the GSDP.

The enhancement of the plan allocation comes in the light of the achievement of important milestone during the current fiscal where the State had incurred Rs.42,07,957.67 crore plan expenditure over 24.5 higher than the previous year. At the same time non-plan expenditure dropped from Rs.63,30,599.77 crore to Rs.57,98,229.48 crore, thus making a 8.4 percent decline.

The state's own revenue receipts are proposed at Rs 72,412.23 crore in 2016-17 as compared with Rs 54,256.71 crore in revised estimates (RE) 2015-16. Transfers from the Centre proposed in the Budget Estimates (BE) 2016-17 are Rs 28,512.52 crores as compared to Rs 25,223 crores in 2015-16 BE.

With the adoption of 2011-12 as the base year for the estimation of GSDP as was done by the Centre last year, the borrowings under the Fiscal Responsibility and Budget Management (FRBM) legislation are likely to be a little higher in the upcoming fiscal.

The budget proposed an amount of Rs 4,675 crore under a 'Special Development Fund' to meet contingencies that arise during the year "which cannot be anticipated in advance and which need to be immediately addressed to".

The government had made significant allocation to welfare in the form of the SC is pegged at Rs. 10,483.96 crore, with 15.45 percent as per population of 2011 census, while 9.08 percent for STs with an amount of Rs.6,171.15 crore and for BC welfare, amounting to Rs.2,537.51 crore.

Focusing on irrigation, the Budget has allocated Rs.25,000 crore for the sector. An allocation of Rs 7,861 crore has been made for Palamuru lift irrigation project, Rs 6,286 crore for Kaleswaram project and Rs 1,150 crore for Sitarama project.

According to budget provision, under loan waiver scheme amounting to 17,000 crore, a high priority has been accorded to pay clear the loan waiver in four instalments, out of four instalments, two instalment of waiver amount has been deposited into the bank accounts, while third instalment of Rs.4,250 crore will be released in 2016-17, by 2017-18, 100% of loan waiver will be achieved.

As a part of the rejuvenation and modernization of government health care system, a substantial increase of Rs.5,966.89 crore has been allocated in 2016-17 for health sector, which is significantly higher as compared with Rs.4932 crore in 2015-16. Rs.316 crore is earmarked for diagnostic equipment, replacement of old beds and carrying out repairs to civil works and Rs.60 crore for purchase of surgical consumables. There is a substantial increase in the budget for sanitation and security services are pegged at Rs.171 crore in 2016-17.

The major allocations made in the budget are: Agriculture and Cooperation – Rs. 6400.81 Cr; Backward Classes Welfare – Rs. 2537.51 Cr; Women’s and Child Welfare – Rs. 1552.58 Cr; Energy – Rs. 5341.46 Cr; Food & Civil Supplies – Rs. 2312.87 Cr; Medical & Health – Rs. 5966.89 Cr; Higher Education – Rs. 2164 Cr; Housing – Rs. 860.37 Cr; Irrigation & CAD – Rs. 26,652.35 Cr; Minorities Welfare – Rs. 1204.44 Cr; Municipal Administration & Urban Development – Rs. 4815.44 Cr; Panchayat Raj & Rural Development – Rs. 10,730.70 Cr; Scheduled Caste Department – Rs. 7122.21 Cr; Secondary Education – Rs. 8574.64 Cr and Tribal Welfare – Rs. 3752.37 Cr.

The unique feature of this year budget is that the provisions proposed next year and provisions for this year are not strictly comparable department-wise for two reasons. As part of the rationalisation of expenditure, a number of plan schemes with similar activities have been clubbed together in a number of departments and a few schemes with only a salary expenditure have been shifted to non-plan from plan. Secondly, ‘Mission Bhagiratha’ and Two-bed room housing are proposed to be funded entirely from budgetary resources. Therefore, no provisions have been made under the Plan for these schemes, except the provisions required for counterpart funding.

The Finance Minister termed the Budget as a step towards fulfilling the dream of ‘Bangaru (golden) Telangana and the budget was in tune with the aspirations of the people.

According to the budget, important new buildings, including new Secretariat complex, new building for the Legislative Assembly, a new international convention centre, offices for MLAs, CM's camp office, residential buildings for officers, additonal buildings at Raj Bhavan and Telangana Kalabharati (a venue for cultural events) are proposed to be taken up during 2016-17.