TS budget outlay may cross 2L cr

Hyderabad: The Telangana State budget outlay for FY 2019-20 is likely to cross Rs 2 lakh crore, with spending on welfare measures set to increase substantially. Chief Minister K Chandrashekar Rao will seek a Vote-on-Account on Friday -- the opening day of the budget session of the state Assembly. In view of the forthcoming Lok Sabha elections, the TS government has decided to go for a Vote-on-Account for a period of six months. For FY 2018-19, the state government had presented a budget with an outlay of Rs 1.74 lakh crore.

Interestingly, the Chief Minister, who holds the Finance portfolio, is presenting the budget in the Assembly for the first time in his entire political career. Former Finance Minister and newly appointed Health Minister E Rajendar is likely to present the Vote-on-account in the Legislative Council. The irrigation sector and welfare areas requiring the fulfilment of certain promises made by TRS ahead of the recently concluded Assembly election viz.

hike in old age pension, special schemes for poor among forward castes and honorarium to Rythu Samanvaya samithis will be accorded priority when it comes to allocations. The ruling party has made the promise of increasing the pension for old age and poorer sections to Rs 2,016 from the present Rs 1,000. Likewise, the pension for the differently abled will be hiked from Rs 1500 to Rs 3,016 per month.

The government would have to double the allocations for the disbursement of pensions in the new financial year, which begins on April 1. In the current financial year, the T state would be spending Rs 5,000 crore on pensions. The Chief Minister also assured the introduction of special scheme for the economic empowerment of poor among people belonging to the forward castes.
The government is also considering a proposal to establish a Reddy Corporation to extend financial assistance to those eligible.

Officials said that the allocations for Ryhtu Bandhu will be increased as the Chief Minister made the promise of increase in cash incentive per acre to Rs 10,000 from Rs 8,000 annually. For FY 2018-19, the government had earmarked Rs 12,000 crore. This will be increased to Rs 15,000 crore. Just these two schemes -- Rythu bandhu and pension – will entail an additional burden of Rs 8,000 crore on the state exchequer.

Sources said that allocation for the irrigation sector could be more than Rs 20,000 crore. Since 2014, the government has been earmarking Rs 25,000 crore for irrigation. Although the government has constituted corporations for the construction of major projects like Kaleshwaram and Devadula Corporation to mobilize funds from financial institutions, the Chief Minister wants substantial allocations for the irrigation sector to ensure speedy completion of ongoing projects, mainly Palamuru–Rangareddy Lift Irrigation Scheme.

Considerable allocations will be made for Education and Health sectors as the government is committed to upgrade hospitals and educational institutions to ensure amenities on par with those provided in the corporate sector.