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The Telangana Government has pegged the budget outlay for the year 2024-25 at ₹2,75,891 for the fiscal 2024-25 with an allocation of ₹53,196 crore for the six guarantees, the ruling Congress party promised in its manifesto.
``While we are not happy with presenting the first budget of our Government as vote on account, this is being done for the sake of clarity on funds for the State Government from the Centre, which will be clarified in the full budget of the Centre yet to be announced after the ensuing polls,’‘ said, Bhatti Vikramarka Mallu, Deputy Chief Minister and Finance Minister in his first budget speech at the Assembly here, on Saturday.
Mallu, pegged revenue expenditure and capital expenditure at ₹2,01,178 crore and ₹29,669 crore respectively.
As per the accounts of 2022-23, expenditure is ₹2,04,523 crore, revenue surplus is ₹5,944 crore, fiscal deficit is ₹32,557 crore. As per the revised estimates for 2023-24, estimated total expenditure is ₹2,24,625 crore, out of which revenue expenditure is ₹1,69,141 crore, capital expenditure is ₹24,178 crore, revenue surplus is ₹9,031 crore, and fiscal deficit is ₹33,786 crore.
MAIN ALLOCATIONS
After allocation for the six guarantees, the budget proposed major allocations to Panchayat Raj & Village Development (Rs 40,080 crore), Irrigation (Rs 28,024 crore) and Education (Rs 21,389 crore), among others.
On the present status of finances, the Minister stated, that they were in in a `dire’ economic condition. ``Even a prosperous State like ours, has been reduced to a begging bowl, due to the misdeeds of the earlier rulers, he said adding: ``Instead of spending on the infrastructure development in the state, the government has frittered it on non-essential activities. The Government’s credibility suffered, as it defaulted in clearing the bills for the expenditure it incurred”.
GSDP
In the fiscal year 2023-24, the Gross State Domestic Product (GSDP) of Telangana, showed an increase in current prices from ₹13,02,371 crore in 2022-23 to ₹14,49,708 crore.
However, the economic growth rate, exhibited a downward trend, declining from 14.7 per cent to 11.3 per cent during the same period. The growth rate at the national level, however, showed a sharper decline, falling from 16.1 per cent to 8.9 per cent. Consequently, Telangana’s state growth rate, was higher by 2.4 percentage points, compared to India’s GDP growth rate, according to Mallu.
SECTORAL GROWTH
In 2023-24 (ending March 31, 2024) the advance estimates show a notable decline in agriculture. The Gross Value Added in the crops sub-sector decreased from Rs 49,059 crore in 2022-23 to Rs 45,723 crore in 2023-24. This significant drop to the tune of 6.8 per cent was primarily due to adverse seasonal conditions.
The secondary and tertiary sectors of Telangana’s economy declined in growth rates. Notable decreases were observed in sectors such as electricity, gas, water supply, trade and repair services, hotels and restaurants, railways, and air transport, the Finance Minister said.
However, the manufacturing sector presented a contrasting trend, growing at 5.9 per cent compared to just 1.3 per cent in the previous year.
Other sectors such as real estate, construction, and mining & quarrying also experienced higher growth rates in 2023-24 compared to the preceding year.
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