Economic slowdown: KCR presents a restrained budget

Telangana Chief Minister K Chandrasekhar Rao on Monday presented annual budget of the state at the Assembly which is pegged at Rs 1,46,492.30 crore a step down from the Rs 1,82,017 crore interim Budget proposed earlier this year.

Of the proposed budget, Rs 17,274 crore will be spent on capital expenditure, and Rs 1,11,055.84 has been set aside for revenue expenditure. As per the proposed budget estimates, the revenue surplus is Rs.2, 044.08 crore and the fiscal deficit is Rs.24, 081.74 crore.

KCR said that all the welfare schemes implemented by his government will continue despite of the overall slowdown of the economy in the country. Finance minister T Harish Rao presented the budget in the legislative council.

“The State government is committed to continue the welfare programmes for the poor people and farmers despite the existing financial crisis,” he said. He proposed Rs 12,000 crore for RythuBandhu cash input scheme, and allocated Rs 1,137 crore towards RythuBeema premium. For the crop loan waiver, the Government proposed Rs 6,000 crore in this Budget. Rs 8000 cr was set aside for free power to farm sector. KCR Kits, Kalyana Lakshmi, Arogya Lakshmi, 6-KG rice and for other such schemes will continue.

“I regret that I am presenting the State Budget for 2019-20 in the House when both the Centre and State are going through a severe financial crisis. We have to tread carefully and cautiously during such a testing time, “he said calling for strict fiscal discipline in troubled times.

“It was estimated that there would be 22.69 percent growth in the tax revenue of the Centre during 2019-20, but in the first quarter, only 1.36 per cent growth was realized. In Telangana State too, we anticipated 15 per cent growth rate but only 5.46 per cent could be realized,” he said. He projected steep fall in commercial taxes, and motor vehicle taxes.

“With funds obtained from the financial institutions and margin money, the government is completing the irrigation projects. Let me assure people through this House that construction works on Kaleshwaram, Palamurur-Rangareddy, Sitarama, Devadula and other such major projects will continue without any interruptions,” KCR said.

The government will release matching grants together with the Central Finance Commission grants to the local bodies. Combining these two, the Telangana government has decided to release Rs.339 crore per month to the rural local bodies, he said. The house was adjourned till Saturday.