Telangana presents tax-free budget

Telangana presents tax-free budget

The Non-Plan Expenditure is Rs 62,785.14 crore and Plan Expenditure is Rs 67,630.73 crore.

Telangana Assembly (Photo: Facebook)
 Telangana Assembly (Photo: Facebook)
Hyderabad: Telangana government presented a tax-free budget for 2016-17 on Monday, proposing a total expenditure of Rs 1,30,415.87 crore. The Non-Plan Expenditure is Rs 62,785.14 crore and Plan Expenditure is Rs 67,630.73 crore.

"This is unprecedented as the proposed expenditure under Plan is higher than that under Non-Plan. This has been done without compromising on non-plan commitments by a combination of rationalisation of expenditure and resource augmentation," state Finance Minister E Rajender said in his budget speech.

With the adoption of 2011-12 as the base year for the estimation of GSDP as was done by the Centre last year, the borrowings under the Fiscal Responsibility and Budget Management (FRBM) legislation are likely to be a little higher in the upcoming fiscal.

The budget estimates indicate a revenue surplus of Rs 3,718.37 crore and a fiscal deficit of Rs 23,467.29 crore, which is 3.5 per cent of the estimated GSDP.

The higher revenue surplus is entirely on account of the proposed allocation of Rs 25,000 crore to the irrigation sector, which is mostly capital.

The state's own revenue receipts are proposed at Rs 72,412.23 crore in 2016-17 as compared with Rs 54,256.71 crore in revised estimates (RE) 2015-16.

Transfers from the Centre proposed in the Budget Estimates (BE) 2016-17 are Rs 28,512.52 crores as compared to Rs 25,223 crores in 2015-16 BE.

The budget proposed an amount of Rs 4,675 crore under a 'Special Development Fund' to meet contingencies that arise during the year "which cannot be anticipated in advance and which need to be immediately addressed to".

Noting that nearly 40 per cent of the population in the state is urban and that it is projected to grow further, the budget proposed Rs 4,815 crore for 2016-17.

The total provision proposed for Panchayat Raj and Rural Development is Rs 10,731 crore, including the provision for MGNREGS.
According to the budget, important new buildings, including new Secretariat complex, new building for the Legislative Assembly, a new international convention centre, offices for MLAs, CM's camp office, residential buildings for officers, additonal buildings at Raj Bhavan and Telangana Kalabharati (a venue for cultural events) are proposed to be taken up during 2016-17.
The provision proposed for roads and bridges is Rs 3,333 crore and that for building is Rs 457 crore.

The budget proposed Rs 25,000 crore for irrigation projects and Mission Kakatiya (revival of water bodies).

An amount of Rs 6,759 crore has been set aside for Agriculture and Cooperation and Marketing departments. As per the budget, farm loan waiver amounting to Rs 17,000 crore is being implemented. Out of the four instalments, two instalments of waiver amount have been deposited in the bank accounts of farmers.

The third instalment will be released in 2016-17 and 100 per cent loan waiver will be achieved by 2017-18.

The budget has proposed Rs 5,967 crore for health sector and Rs 7,122 crore for scheduled castes' welfare.

It has earmarked Rs 4,693 crore for Aasara (social security) pensions, Rs 1,553 crore for women and child welfare, Rs 1,204 crore for welfare of minorities, Rs 738 crore for Kalyan Lakshmi (scheme that provides financial help to poor at the time of marriage), Rs 2,538 crore for welfare of backward classes and Rs 3,752 crore for tribal welfare.

A total of Rs 100 crore was allocated for a fund to be set up for welfare of Brahmins. The government would work out the modalities for Brahmins' welfare shortly.

The budget proposed to fund the TRS government's flagship programmes of 'Mission Bhagiratha' (to provide tapped drinking water to every household) and double bedroom houses for poor entirely from extra-budgetary resources.
Telangana presents tax-free budget Telangana presents tax-free budget Reviewed by Ajit Kumar on 7:36 PM Rating: 5

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