Telangana: Bhatti’s budget raises concerns over debt burden
The budget outlines that Rs.69,572.48 crore will be raised through various forms of debt. This amount equals to half of the State's own tax revenue estimated at Rs.1,38,181.26 crore and highlights the growing dependency on borrowing.
Hyderabad: The State budget for 2024-25 has sparked significant concern due to its heavy reliance on debts. The Congress government on Thursday revealed a total expenditure plan of Rs 2,91,159 crore, with a substantial portion of Rs.69,572.48 crore funding sourced from debt, next only to the State’s own tax revenue. Further, the budget remains full of promises, with either no or meagre allocations made for different schemes and projects.
The budget outlines that Rs.69,572.48 crore will be raised through various forms of debt. This amount equals to half of the State’s own tax revenue estimated at Rs.1,38,181.26 crore and highlights the growing dependency on borrowing. Ironically, Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka attempted to blame the previous BRS regime for obtaining huge loans, saying that this was forcing the current Congress government to allocate most funds for repayment.
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Breaking down the debt further, the budget indicates that Rs.57,112.48 crore will come from open market loans, Rs.3,900 crore from central government loans, Rs.1,000 crore from other loans, Rs.4,000 crore from deposit transactions, and Rs.3,560 crore from loans and advances.
The projected revenue receipts stand at Rs.2,21,242.23 crore, including Rs.1,38,181.26 crore from tax revenue, Rs.26,216.38 crore from the State’s share in central taxes, Rs.35,208.44 crore from non-tax revenue, and Rs.21,636.15 crore from central grants.
Out of the total budget, Rs.2,20,944.81 crore is allocated for revenue expenditure, with Rs.17,729.77 crore set aside for interest on loans. Only Rs.33,486.50 crore, a mere 11.5 per cent of the total budget, is allocated for capital expenditure, which includes development projects. The fiscal deficit stands at Rs.49,255.41 crore, with a minor budget surplus of Rs.297.42 crore.
Despite Bhatti Vikramarka’s assurances of a realistic budget, experts argue that the budget projections were overly optimistic. For instance, the previous year’s budget anticipated Rs.41,259.17 crore in grants from the Centre, but only Rs.9,729.91 crore was realised. This year’s budget forecasts Rs.21,636.15 crore in central grants.
Further, the budget remains full of promises, with either no or meagre allocations made for different schemes and projects. For instance, despite assurance to enhance the financial assistance for beneficiaries under Indiramma Housing from Rs.3 lakh to Rs.5 lakh, no specific allocation has been made. The State government promises to construct a total 4.5 lakh houses, of 400 sq.ft with RCC roofing, kitchen and toilet in the State.
While the Finance Minister allocated Rs.53,196 crore for implementing the Abhaya Hastham (Six Guarantees) of the Congress in the Vote-on-Account budget presented in February earlier, there is no mention of it. While there are 13 promises under the scheme, less than six find mention and even fewer get specific allocations.
