Youngest State moving at a gallop
Vanam Jwala Narasimha Rao
The Hans India (28-05-2018)
The
Budget for 2014-15 was in continuation of the Vote-on-Account Budget presented
by the then Government of the undivided State. The first full-year Budget for
2015-16 was prepared without the benefit of having estimates for the full 12 months
of the previous year as the State was formed in June 2014.
Though
the tax devolution to the States was increased from 32 to 42 per cent of the
divisible pool of the Central taxes for the five-year period of 2015-20
following the recommendations of the 14th Finance Commission, the
benefit has bypassed the State of Telangana just because its per capita income
is higher than the national average. The average per capita income of the State
masks wide inter district and intra district variations. Despite the reduction
in the tax devolution to the State from 2.893 per cent in 2014-15 to 2.437 per
cent in the five-year period 2015-20 and reduction in plan transfers, the State
has been able to maintain sound fiscal parameters and is one of the few states
to become eligible for the additional borrowing facility of 0.5% of GSDP.
Budget 2016-17
By the time, the preparation of the
State budget for 2016-17 was underway, the government was able to get a
comprehensive idea about the trends in the State finances. It is only after
the income and expenditure under Plan and Non-Plan schemes from 31st
March 2015 to 31stMarch 2016 was known clearly, the real basis for
Telangana State budget calculation was arrived at. The first-year budget after
formation of Telangana was on ad-hoc calculation based on earlier budgets and
the second-year full-fledged budget is based on some exercise. Subsequently
there was a total understanding and deep study department wise, scheme wise and
priorities wise. That is how Government could overcome the challenge.
Though the Budget for 2016-17 was the
third Budget of the State, it was in a way, the first Budget to be prepared
after a comprehensive review of all items of expenditure and a realistic
assessment of resources based on the facts and figures available. It is a
matter of great satisfaction that the State government was able to maintain a
sustainable fiscal position despite mounting commitments on account of number
of developmental and welfare schemes taken up after the formation of the State.
This has been achieved through improvement in the efficiency of revenue
collections without any increase in tax rates. Telangana State stood first
among all the states by clocking a growth rate of 21.1% in its own-tax revenue
in 2016-17 over 2015-16.
Budget 2017-18
In the process, the fourth consecutive
Budget, for the year 2017-2018, was both inspirational and message oriented.
The Budget reflected the Government’s objective of reaching out to all sections
of people, all those in the hereditary professions, all religions, people
working in various fields, all government departments that are entrusted with
the implementation of development and welfare schemes, lower income as well as
middle income groups and with no exception.
Budget 2018-19
Against
this background, the budget that was presented for the year 2018-2019 to the
Assembly, mentions without any ambiguity as to how the schemes and programs
that have been conceived and being implemented in the state during the last 45
months, could be standardized, stabilized and consolidated. The budget also
makes it clear as to how state GSDP is improved and bettered. The financial
stability and progress despite GST and demonetization has also been
highlighted. In addition, there is a mention about the schemes that were
conceived during 2017-2018 and the way they are going to be implemented in
future.
These
among others include: Rs 8000 Investment Support Scheme for Agriculture,
formation of Rythu Samanvaya Samithis, farmers’ insurance scheme, sheep
distribution, employees welfare, 24-hour power supply to all including
agriculture, more and more welfare measures, SC, ST, BC, Minority, Brahmin
welfare, handloom industry development, KCR Kits etc. Keeping in view the
current and future needs of people and recognizing the priority sectors like
agriculture for reaching the results to all, the way the budget has been
formulated speaks volumes. This is the Role Model Budget and reflects the
aspirations of public at large as the case of earlier four budgets.
Number
one in India Today’s Best Economy State Rankings
It’s no surprise that the Telangana State has been
ranked number one in India Today’s (Leading English Fortnightly Magazine) Best
Economy state rankings and this speaks about the buoyant economy of the state. There has been a distinct upward shift in the growth path of the
economy of Telangana since its formation in June 2014. The average annual
growth of State Domestic Product (GSDP) increased from 4.2% in the two years
preceding the formation of the state (2012-14) to an impressive growth of 9.5%
during the three years following the formation of the State (2014-17). This apart, Telangana State stood first
among all the States by clocking a growth of 21.10% in its own tax revenue in
2016-17 over 2015-16. In its report, CAG for the financial year 2017-18
stated that Telangana state stood first in the revenue growth rate in the
country registering 17.82 per cent growth.
Priority-Productive Sectors
The
Government has the wisdom of economy and is fully conscious of the sectors
where benefits from the investments are the highest. However, the government is
also spending funds to satisfy the basic needs for the welfare of poor and
vulnerable. Thus, some money goes to sectors where benefits are not directly
visible but contribute to the development of human resources and make them more
productive. The government’s decision to go for land records rectification and
updating also will add up to 2% growth rate.
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