The newly-formed Telangana State starts with many advantages. It has inherited a surplus budget, world-class infrastructure in Hyderabad and a matured industrial environment. But the challenge of the new Government is seen mainly in expanding the growth and creation of wealth and jobs. This is precisely the challenge before Etela Rajender, the new Finance Minister.

A household name during the days of agitation for the separate state, the simple and outspoken first-time minister, representing Huzurabad in Karimnagar district, has to steer the State on a growth path as its finance head. BusinessLine spoke to him on his priorities. Excerpts:

In terms of the allocation of funds, what are your priorities?

The first priority is to fulfil our elections promises, which will require budgetary allocations. Welfare programmes, agriculture, irrigation and industry development are top on our Government’s agenda.

Telangana will have its first budget next month. What is your current financial situation?

As has been said by our Chief Minister, the vision is to develop Telangana on all fronts and to make it a power-surplus State.

We have a surplus budget as a headstart. Going forward, there will not be any deficit-budgeting to the maximum possible extent. Every thing would depend on accuracy of data and we are in the process of ascertaining it. The Government is just four days old and we need to work on these aspects in detail.

How do you plan to mobilise funds? Will you approach the World Bank, other global agencies?

We will explore all options but we first need to get our hands on what actually is the existing situation.

As Andhra Pradesh has been granted special status, do you expect some competition from it for investments. What’s the plan?

It will definitely create an anomaly. We will step up our demand for the special status for Telangana as well. Our Chief Minister, K Chandrasekhar Rao, has already taken up the matter with the Prime Minister. Next week, there is States’ Finance Ministers’ meeting where I will also broach the topic. We hope to resolve this issue even before budget so that allocations can be fine-tuned.

There are conflicting versions on your party’s electoral promise of a loan waiver for farmers?

We are committed to all our promises, including the loan waiver. The work on this front has already commence and we are working with banks. There is no clarity yet on the quantum of eligible loans. There will be more clarity by next week.

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