Telangana government presents budget of Rs 2.91 lakh crore, hints at heavy dependence on borrowings

Deputy Chief Minister, Incharge of Finance portfolio Mallu Bhatti Vikramarka who tabled the Budget in the Assembly said the state government proposed to allocate Rs 72,659 crore to agriculture.

Hyderabad: The Congress government in Telangana presented its maiden full budget for the financial year 2024–25 on Thursday with a total outlay of Rs 2,91,150 crore.

The state deputy chief minister and finance minister, Mallu Bhatti Vikramarka, presented the budget in the state assembly, proposing a revenue expenditure of Rs. 2,20,945 crore and a capital expenditure of Rs. 33,487 crore.

Last February, months after coming to power, the new government presented a vote on account budget instead of a full budget.

According to budget estimates, major allocations went to the agriculture sector, including the Revanth Reddy government's flagship farm loan waiver program. The agriculture department has received a total allocation of Rs 72,659 crore. The government estimated that the farm loan waiver programme, launched a few days ago, would cost Rs 31,000 crore in total.

“In spite of the financial distress in the state, we are systematically garnering the necessary funds of Rs. 31,000 crore needed for this scheme. On July 18, 2024, we transferred Rs. 6,035 crore at a time into the accounts of 11.34 lakh farmers for the Runa Mafi (farm loan waiver). The rest of the loans up to Rs 2 lakhs will also be waived off soon,” said Vikramarka while presenting the budget.

He also said that while 47.3 percent of the state's population has been dependent on agriculture for their livelihood, the contribution of agricultural and allied sectors to Telangana's economy was only 15.08 percent.

“The increase in the share of this sector in the economy will lead to the economic strengthening of the farmer. With this aim in view, our government will provide every possible type of assistance to the farmer. In fact, we are taking a step that was never taken before. In this budget, we are proposing a major share of Rs. 72,659 crore to agriculture. This decision will go down as a historical decision in the country as far as agriculture is concerned,” the finance minister said.

Six guarantees schemes

The budget also allotted around Rs. 723 crore for the LPG Cylinder for Rs. 500/- scheme and Rs. 2,418 crore for the Gruha Jyothi scheme, two important components of the Six Guarantees that the Congress party announced during the last year's assembly polls.

After Congress came to power in Telangana, the government started a scheme to provide LPG cylinders for Rs. 500. To date, 39,57,637 families have availed of this scheme. Since last December, the government has spent a total of Rs 200 crore on this scheme.

The discoms will issue zero bills to houses utilizing less than 200 units under the Gruha Jyothi scheme. In lieu of paying zero bills to the Discoms, the state government reimburses them for the actual charges incurred. The issuance of zero bills began on March 1, and as of July 15, approximately 45,81,676 zero bills have been issued. Until June 2024, the government has paid Rs. 583.05 crore to the Discoms for these zero bills.

68.60 crore travels by women under free bus travel scheme

Women in Telangana have made 68.60 crore travels under the Mahalakshmi-Free Bus Transport scheme, with no restrictions on the number of times or distance traveled. Free bus travel for women has been one of the important components of the Abhayahastham-Six Guarantees programme announced by the Congress during last year's assembly polls.

The new Congress government launched it as their first scheme last year, and to date, they have spent around Rs. 2351 crore on it.

“Women in the state are extremely happy with this scheme. They are enthusiastically visiting tourist places, temples, friends, and relatives using this free travel facility. This scheme is indirectly helping the state economy as well. The state government reimburses the amount RTC incurs for providing free travel under this scheme on a monthly basis. This is also helping RTC transform into a billion-dollar corporation,” said Vikramarka.

Telangana debt: Rs 6,71,757 crore

Vikramarka asserted that the Congress government had inherited a legacy of a poorly managed state economy, treating the state like a private land lord's estate by the previous BRS government. The huge loan burden turned a bountiful state at the time of bifurcation into a pitiful one, he said.

“It has reached such a sad state that paying salaries and pensions to employees and pensioners was a big challenge in itself. Because of this in-disciplined attitude and administration of the previous regime, people across all sections faced the ill effects and suffered immensely,” he said while presenting the budget.

Rs 6,71,757 crore of loan burden on the state the Congress government inherited, he said. Since the formation of the Congress government, it has raised loans of Rs. 35,118 crore and repaid loans of Rs. 42,892 crore.

“In effect, we have repaid a higher amount of Rs. 7,774 crore than the loans we have raised and demonstrated our sincerity to the people. The previous government has reduced the government to such a sad state that loans had to be raised to repay loans,” observed Vikramarka.

He also said that the previous BRS government had gathered substantial funds through various means, like taxes, debts, and other sources. However, there is no correlation between the amounts spent and the progress achieved. “On one hand, debts have ballooned, and on the other hand, bills to be paid kept piling up, pushing the state’s economy into a precarious situation,” he added.

Congress government spent Rs 34,579 Cr on various schemes since last December

Since last December, the Congress government has spent Rs. 34,579 crore on various schemes like the Maha Lakshmi Scheme, free electricity up to 200 units, assistance to farmers under the Rythu Bharosa, subsidies on rice, etc. Apart from the expenditure on schemes, the government had also made a capital expenditure of Rs. 19,456 crores, noted Vikramarka.

Telangana GSDP @ Rs. 14,63,963 crore

While the Indian economy recorded a growth rate of 7.6 percent during 2023–24, Telangana recorded a growth rate of 7.4 percent during the same period. At current prices, Telangana’s Gross State Domestic Product (GSDP) in 2023–24 was Rs. 14,63,963 crore. This is 11.9 percent higher than the previous year. At the national level, this growth rate was 9.1 percent.

In 2023-24, Telangana's per capita income was Rs. 3,47,229, whereas the country's per capita income was Rs. 1,83,236. At the same time, there is a gross inequality among various districts. For example, the per capita income of Ranga Reddy District was Rs. 9,46,862, whereas that of Vikarabad was Rs. 1,80,241. This indicates that the economic development among districts has been nearly equal.

Major allocations:

• Total outlay: Rs 2,91,159cr

• Revenue expenditure: Rs 220945cr

• Capital expenditure: Rs 33487cr

• Agriculture : Rs 72659cr

• SC welfare : Rs 33124cr

• Panchayati Raj : Rs 29816cr

• Irrigation: Rs 22301cr

• Education: Rs 21292cr

• ST welfare: Rs 17056cr

• Energy: Rs 16410cr

• Health: Rs 11468cr

• Home: Rs 9564cr

• BC welfare: Rs 9200cr

• R&B: Rs 5790cr

• Civil Supplies: Rs 3836cr

• Minority Welfare : Rs 3003cr

• Industries :Rs 2762cr

• Women &Child welfare: Rs 2736cr

• Gruha Jyothi : Rs 2418cr

• Animal husbandry : Rs 1980cr

• Regional Ring Road: Rs 1525cr

• Forests & Environment: Rs 1064cr

• IT: Rs 774cr

• Horticulture: Rs 737cr

• Rs 500 LPG cylinder: Rs 723cr

For Hyderabad region total Rs 10,000cr:

• GHMC – Rs 3065cr

• HMDA – Rs 500cr

• Water works- Rs 3385cr

• HYDRAA- Rs 200cr

• Metro to Airport- Rs 100cr

• ORR- Rs 200cr

• Hyderabad Metro Rail: Rs 500cr

• Old city Metro : Rs 500cr

• MMTS – Rs 50cr

• Musi Riverfront: Rs 1500cr