Telangana govt gears up for full-scale budget on July 25
Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka has already completed department-wise review of budget proposals, with departments outlining their priorities.
Hyderabad: The Congress, which dubbed the previous BRS government’s Rs 2.9 lakh crore budget of 2023-24 unrealistic and overly ambitious, is now gearing up to present a full-scale budget with a little over Rs.2.9 lakh crore for 2024-25. This budget, which includes provisions for various schemes such as loan waivers and six guarantees, comes just as the vote-on-account budget for the initial four months ends on July 31.
Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka has already completed department-wise review of budget proposals, with departments outlining their priorities. Chief Minister A Revanth Reddy is expected to meet with the Finance department officials on Monday to finetune the budget estimates. The State budget will have minor adjustments depending on the central grants, Central Sponsored Schemes (CSS), and State’s share in taxes, to be allocated in the Union Budget to be presented on Tuesday.
While the Assembly session is scheduled to commence from July 24, the full-scale State budget will be presented on July 25 following the Cabinet approval on the same day in Committee Hall-1 of the Assembly. Deputy CM Bhatti Vikramarka will present the budget in the Assembly, while IT and Industries Minister D Sridhar Babu is likely introduce it in the Legislative Council.
During the previous fiscal, the BRS government introduced a State budget of Rs.2,90,396 crore, which the Congress criticised as unrealistic and overly ambitious. Upon coming to power, the State government presented a vote-on-account budget of Rs.2,75,891 crore in February this year, stating that it was realistic and relied on actual revenues. Now, in a move seen by some as financially imprudent, the budget is set to increase back to Rs.2.9 lakh crore, driven by the need to fund the ambitious crop loan waiver and 13 promises under the six guarantees of the Congress.
To thwart the increasing attacks from the opposition, the Agriculture department is expected to receive substantial allocations, with estimates of Rs.31,000 crore for the crop loan waiver, Rs.15,000 crore for Rythu Bharosa, and Rs.7,000 crore for Rythu Bima. The Irrigation department has requested Rs.19,000 crore for key projects like Palamuru-Ranga Reddy and also pending payments, though it may receive only Rs.11,000 crore. In the ‘Vote-on-Account’ budget, the Rs.53,196 crore announced for the six poll ‘guarantees’ is expected to witness a slight revision.
Despite the government’s ambitious spending plans, questions remain about the viability and sustainability of these allocations. Critics argue that the massive budget, filled with populist schemes such as Rs.500 LPG cylinders, free bus travel for women and free electricity under 200 units, is more about political posturing than prudent financial management.
In its Vote-on-Account budget, the State government indicated that it was largely relying on the union Budget allocations for funding several development and welfare programmes. The allocation for the Indiramma Houses scheme will depend on funds from the Pradhan Mantri Awas Yojana in the Union Budget. However, it is unclear whether this budget will accommodate schemes like the Rs 2,500 per month allowance to women and unemployment allowance, further adding to concerns about the government’s priorities and fiscal discipline.
With the final details yet to be ironed out, the proposed budget raises serious questions about the government’s ability to balance ambitious spending with fiscal responsibility.
