Welfare is
always a priority in Telangana Budgets
Vanam Jwala
Narasimha Rao
The Pioneer,
Hyderabad (06-03-2020)
Telangana
State, that came into exitance on 2nd June 2014 achieved miraculous
progress in a short span of five years and nine months. Innovative and unique
schemes and programmes being implemented in the State during this period astonished
the entire country. The State has become one of the fastest growing States in
the country and now everyone speaks about Telangana Model.
Soon after KCR became
Chief Minister, he contemplated drafting a comprehensive policy for the state for
its overall development. The policy as envisaged by him, among others, included
aspects like the state’s economy vis-à-vis country economy, the goals of the
state, the aims and objectives etc. He said that the policy so formulated should aim at generating wealth
which was unable to be identified till then.
The Government has the wisdom of
economy and is fully conscious of the sectors where benefits from the
investments are the highest. Government has also been spending funds to satisfy
the basic needs for the welfare of poor and vulnerable. Maintaining momentum of
economic growth, fiscal prudence and maintaining debt sustainability are the
three important factors that contribute for a better economy and the state
adheres to them.
The first budget
of Telangana which was in continuation of the
Vote-on-Account Budget presented by the then Government of the undivided State was presented during the financial year
2014-15. Prior to preparation, government constituted
14 task force committees in the areas of Welfare, Drinking water
supply-Sanitation, Agriculture-Dairy industry, Industry-basic infrastructure
development, Human resources development, Irrigation-Water resources, Energy,
Environment, Law-administrative reforms, Vigilance, Resource mobilization, Law
and order, Urban development and Rural development to finalize budget proposals.
Based on the reports of the task
forces, the first Budget of the Telangana State was presented to the State
Legislature on November 5, 2015. Thus, the first Telangana Budget was a major
departure from the past both in its approach and content, despite not having
full comprehension about the financial position of the 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.
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 was 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 was
based on some exercise.
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 was 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 in the State.
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.
The
budget that was presented for the year 2018-2019, mentioned without any
ambiguity as to how the schemes and programs that were conceived and
implemented in the state till then, could be standardized, stabilized and
consolidated. The budget also made it clear as to how state GSDP was improved
and bettered. The financial stability and progress despite GST and
demonetization were also highlighted. In addition, there was a mention about
the schemes that were conceived during 2017-2018 and the way they would be
implemented in future.
The Telangana State was ranked number one which was
an indication about the buoyant economy of the state. There
was 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.
CM KCR holding the Finance portfolio presented the Vote-on-Account Budget of the State for the year
2019-20. This was the sixth Budget of the new State of Telangana and first in
the second term. His budget speech for an hour touched every aspect of Telangana people and to put it in
simple words, it was for the welfare of people. There were special
reasons for Vote-on-Account Budget as detailed by
CM in his speech. He said that once the Union Government introduced the
full-fledged budget after elections the quantum of allocation to each state
including Telangana would be known and hence there would be some clarity.
Presenting
full-fledged budget for the same year CM KCR said that Telangana State achieved
miraculous progress in a short span of five years and by making rapid strides
in all the spheres through balanced development, became one of the fastest
growing States in the country. He however said that, “Unfortunately, the
country is going through an economic slowdown over the last year and half.
There is a steep decline of the economic growth in the country. The severe
economic slowdown is leading to serious repercussions in the country. The
Budget is formulated based on the facts and realties, as they exist today. If
the situation improves in future, there is always scope for making suitable
changes in the estimates later”.
Detailing
about five years of economic development KCR said that, in the first year of
formation of the State, it could spend just Rs 6,247 crore per month, whereas
after five years, it reached a stage to spend Rs 11,305 crore per month. There
was significant increase in the capital expenditure too. During the last ten
years under the combined State, total capital expenditure incurred in Telangana
was Rs 54,052 crore. Whereas, after formation of Telangana, within five years,
an amount of Rs.1,03,551 crore was incurred as capital expenditure. Sharing the
details of State’s financial position and the fiscal indicators, KCR said that
though there was fall in revenues due to economic slowdown, he expressed hope
and optimism that situation will change for the better.
The
people-centric, problem solving policies and programmes of the State government,
implemented with commitment resulted in the transformation of Telangana
Society. The society has recovered from the neglect suffered in the united
State. Against this genesis and
evolution of the state’s budgets, this year’s budget is being presented to the
state Assembly by the Finance Minister.
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