Telangana economy developing at a rapid pace: KCR

The secondary sector has improved significantly and is likely to register a growth rate of 14.9 per cent at current prices in 2018-19.

By Author  |  Published: 22nd Feb 2019  4:54 pm

Hyderabad: Chief Minister K Chandrashekhar Rao on Friday retraced the rapid development of Telangana from the time it achieved Statehood in 2014.

“Telangana was crisis-ridden. There was acute power shortage and unscheduled power cuts forced industries to work in shifts resulting in negative growth of the industrial sector. The farm sector was in distress resulting in a very high incidence of farmers’ suicides, and the economy was growing at a very slow pace,” the chief minister said, presenting his maiden vote-on-account budget in the State Assembly.

(adsbygoogle = window.adsbygoogle || []).push({});

He pointed out that the average annual GSDP growth rate of Telangana region at constant prices in the combined State was barely 4.2 per cent in the two years (2012-13 and 2013-14) immediately preceding the formation of the new State, as compared with the national average of 5.9 per cent.

“However, after formation of the State, the growth rate more than doubled to 10.6 per cent in 2018-19. This is an indisputable proof that our Government has done lot more in a very short period of less than five years in putting the economy on a higher growth trajectory,” he said, adding that the government not only overcame several adversities and deepened social and economic foundations, but also emerged as a model for the rest of the country in a short span of four years.

Stating that the TRS government was not deterred by the crisis and the challenging task of addressing it, Chandrashekhar Rao said the government acted fast and decisively. “We started our difficult and challenging journey of rebuilding and reinventing Telangana,” he said.

Stating that the GSDP growth at current prices had improved from 14.2 per cent in 2016-17 to 14.3 per cent in 2017-18, he said that given the trend, the State was estimated to grow at 15 per cent in 2018-19 as against the national growth average of 12.3 per cent. The GSDP of the State during 2018-19 is estimated at Rs. 8,66,875 crore. The primary sector of the GSDP at current prices is expected to register a growth rate of 10.9 per cent in 2018-19, and this can be attributed mainly to improvement in power situation, rejuvenation of irrigation facilities, distribution of sheep among the shepherd community, supply of fish seeds to fishermen community and investment support to farmers, he said.

The secondary sector has improved significantly and is likely to register a growth rate of 14.9 per cent at current prices in 2018-19. This growth is because of assured power supply, liberalized industrial policy in the form of TS-iPASS, improvements in ‘Ease of Doing Business’ and availability of skilled manpower.

The tertiary sector is likely to register an impressive growth of 15.5 per cent.
As per the latest estimates, the State’s per capita income at current prices is estimated at Rs 2,06,107 for the year 2018-19, as against Rs 1,81,102 in 2017-18 showing an increase of 13.8 per cent. This is significantly higher than the national growth of 8.6 per cent.

“Telangana is growing by leaps and bounds in its States Own Tax Revenue in comparison with others. The average SOTR growth rate in the first four years after formation was 17.71 per cent, catapulting Telangana to the number one position in the country,” the chief minister said, adding that prudent fiscal management and clamp down on corruption were the main reasons for the phenomenal growth.

Telangana again leads the country in capital expenditure as a proportion of total expenditure. In 2016-17, capital expenditure was pegged at 28.2 per cent.

Citing an example of effective utilisation of funds by Telangana, Chandrashekhar Rao said that in undivided Andhra Pradesh, the total capital expenditure in 23 districts, from 2004-05 to 2014, was Rs 1,29,683 crore. The capital expenditure incurred on Telangana region was only Rs. 54,052 crore during the same period. “But within a short period of four and half years from 2014 to 2019, the capital expenditure stands at Rs 1,68,913 crore. This is a symbol of progress,” he said.