Hyderabad: For the first time since its formation in 2014, Telangana is poised to present a state budget crossing the Rs 3 lakh crore-mark, with the introduction of a full-fledged budget of Rs 3.08 lakh crore.
The budget is likely to be presented in the assembly on March 19 by finance minister Bhatti Vikramarka.
Several key departments such as panchayat raj, agriculture, and health, have sought allocations together exceeding Rs 50,000 crore. With the Congress govt now in its second year, there is optimism that the upcoming budget will provide much-needed relief to the govt following the fulfilment of major promise of farm loan waiver within the first 18 months of governance.
Despite the state’s tight fiscal situation, the govt has worked to maintain fiscal discipline. It has managed to pay off the borrowings, both the interest and principal, accumulated over the past decade. However, sources within the govt point to a more pressing concern: Outstanding bills. Numerous departments and govt employees are still awaiting payment clearance.
Though discussions on the Pay Revision Commission are yet to take place, govt is caught in a delicate situation: Clearing pending dues, funding welfare schemes, addressing debt obligations, and ensuring the fiscal deficit remains under control. These are critical considerations as Telangana moves forward with its budgetary plans.
This budget comes on the heels of the Rs 2.81 lakh crore budget introduced for the current financial year. The new budget, slated for presentation after the governor’s address on March 12, reflects both the financial progress and challenges the state faces. While Telangana is among the top performers in terms of generating its own tax revenue, the state remains encumbered by significant financial obligations tied to ongoing schemes.
Bhatti has been vocal about the need for greater borrowing flexibility for states. He had urged the central govt to remove restrictions on state borrowings for more fiscal autonomy and enable states to achieve their development goals without financial constraints.
Bhatti also highlighted Telangana’s long-standing issue of underfunding in centrally sponsored schemes (CSS). The state govt has requested that the allocations for these schemes be made fairly, based on population ratios, and that the state be given more flexibility in their implementation to effectively address its specific needs.
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