Telangana budget pegged at mammoth Rs 2.30 lakh crore for 2021-22

The revenue expenditure is estimated at over Rs 1.69 lakh crore against receipts of over Rs 1.76 lakh crore while the capital expenditure has been placed at Rs 29,046.77 crore and fiscal deficit at Rs 45,509.60 crore.

Hyderabad: True to Chief Minister K Chandrashekhar Rao’s assurance of a promising Budget, Finance Minister T Harish Rao on Thursday presented a Rs 6,743 crore revenue surplus Budget for 2021-22 with the annual outlay pegged at a mammoth Rs 2.30 lakh crore, recording close to 39 per cent jump over the revised estimates of Rs 1.66 lakh crore for 2020-21.

The revenue expenditure is estimated at over Rs 1.69 lakh crore against receipts of over Rs 1.76 lakh crore while the capital expenditure has been placed at Rs 29,046.77 crore and fiscal deficit at Rs 45,509.60 crore.

What is significant about the Budget is that it not only reveals the resilience of the State in the wake of the still continuing Covid-19 pandemic, but also the government’s positive approach to a virtual crisis situation evident in the fact that key sectors such as irrigation and industry find allocations in excess of 50 per cent over last year’s figures.

Besides, it also announced two major schemes, one for Dalit empowerment and another for upgradation and modernisation of government educational institutions in the State, both with substantial budgetary allocations.

“The Chief Minister initiated efficient measures to protect the health of the people besides taking precautionary steps to minimise the impact of Covid on the State economy, and succeeded. The State economy is on a recovery path which would improve the GSDP significantly in the next financial year,” Harish Rao said, adding that development of the State and welfare of the people continue to be the focus of the government.

The Minister pointed out that due to the proactive measures of the government, the primary sector comprising agriculture and allied fields registered 17.7 per cent growth in 2020-21, while the secondary and service sectors contracted by 5.2 per cent and 1.9 per cent respectively. Compared with the 3.8 per cent contraction in GDP (Gross Domestic Product) of the country due to the adverse impact of the pandemic, the State recorded a positive growth of 1.3 per cent in GSDP (Gross State Domestic Product), the Minister said.

As per advance estimates, Telangana’s GSDP at current prices in 2020-21 was estimated at Rs 9,78,373 crore. Following the pandemic, the GSDP growth declined significantly from 13.5 per cent in 2019-20 to 1.3 per cent in 2020-21 but was still far better than the GDP that declined from 7.8 per cent to -3.8 per cent during the same period. “With lot of foresight, the Chief Minister took steps to stimulate the rural economy which prevented any adverse pandemic impact on the rural economy,” the Minister said.

Improvement in power supply, increase in irrigated area following construction of new projects and implementation of many development and welfare schemes like Rythu Bandhu, sheep distribution and supply of fishlings to fishermen, helped the primary sector continue to keep looking north.

Despite the adverse conditions, the State’s Per Capita Income is estimated to increase 0.6 per cent in 2021-22 over Rs 2,27,145 in 2020- 21. The country’s PCI, on the other hand, is estimated to decline 4.8 per cent to Rs 1,27,768 in 2021-22. Thus, Telangana’s PCI will be Rs 99,377 higher than the national PCI. “This is proof that Telangana’s economy is in a better state even during such adverse conditions besides signalling its emergence as an economic powerhouse in the country,” the Minister said.

Tourism outlay up 88%

The State government’s allocations to the tourism and cultural sector have increased by nearly 88 per cent this year — from last year’s Rs 385.62 crore to Rs 726 crore in 2021-22.

The government had taken steps to develop facilities at different tourist spots across the State. But due to the pandemic, some of the initiatives proposed in the previous Budget could not be implemented, said Finance Minister T Harish Rao. “In 2021-22, the government has decided to commence Kaleshwarm Tourism Circuit works,” he added.

The government is promoting Telangana culture and traditions at national and international levels besides celebrating Bathukamma, Bonalu, Ramzan, and Christmas as State festivals.