Telangana’s increase in capital expenditure highest in country

The capital expenditure of the State has increased by more than five times within last eight years, from Rs.11,583 crore in 2014-15 to Rs.61,343 crore in 2021-22.

Hyderabad: After witnessing unprecedented challenges during and after the Covid-19 pandemic, Telangana has now emerged a leader among all States in the country in terms of annual increase in capital expenditure. The capital expenditure of Telangana has increased by more than five times within last eight years, from Rs.11,583 crore in 2014-15 to Rs.61,343 crore in 2021-22.

Collectively, all States and union territories budgeted an increase of 28 percent in their capital expenditure in 2021-22 compared to previous fiscal, with Telangana leading the way with an 87 percent increase. The State government spent around Rs.32,645 crore in 2020-21 towards capital expenditure, which took a quantum jump to Rs .61,343 crore in 2021-22. Even in terms of highest capital expenditure in the country, Telangana stood fifth among major States.

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Capital expenditure is the budget spent by the government on developmental activities including equipment, buildings, health facilities, education and other infrastructural development works. Over the last eight years, Telangana has been allocating large amount of its budget on creating fixed assets like investment and infrastructure development including irrigation projects which gives long-term dividends.

The State owned Tax Revenue (SOTR) also has shot up from Rs.29,288 crore in 2014-15 after the State formation to Rs.92,910 crore in 2021-22, which is also a record increase. Thus, Telangana is earning Rs.254.54 crore from SOTR and spending Rs.168 crore every day towards capital expenditure alone.

Among other States, West Bengal witnessed the second highest increase of 78 percent in capital expenditure from Rs.36,498 crore in 2020-21 to Rs 65,291 crore in 2021-22. Surprisingly, six States, especially the BJP-ruled States are cutting down on capital expenditure from the previous year. Among major states, Maharashtra budgeted only a three percent increase, while Bihar cut the capital expenditure by a steep 10 percent. Uttar Pradesh, the largest State in terms of area and population, has the highest capital expenditure of Rs.1.44 lakh crore in 2021-22, but has recorded only a 20 percent increase compared to Rs.94,788 crore in 2020-21.