Hyderabad: Despite faring well on the economic and industry front, the Telangana government feels that revenue potential of the state is “quite limited as majority of the districts are economically backward”.
Adding to the trouble, the Socio Economic Outlook 2014, which was presented to the Legsilative Assembly by the state planning department, expects a shrinking treasury due to the “likely erosion of tax base in the short to medium turn.”
The report suggested a balance regional development in the state as against the concentrated development witnessed by Hyderabad and surrounding areas in erstwhile undivided Andhra Pradesh. The solution, according to the report, lies in the revival of growth particularly in the manufacturing and agriculture, two sectors that benefit a large chuck of population.
During the decade 2004-2014, the state registered an average growth rate of 9.8 per cent as against the national average of 7.6 per cent. Agricultural sector grew at 7.2 per cent (national average 3.9), industry 9.4 per cent (6.9) and services 10.9 per cent (national average of 9.1).
The contribution of the service sector to the state’s Rs 3.78 lakh crore GSDP is more than half at 56 per cent, while industry is 27 per cent.
The agriculture, which employs largest number of people, contributes the lowest of the three at 17 per cent. However, the report indicates that the better agricultural growth is invariable for the promotion of balanced growth.
“The way forward for reinventing Telangana rests on fully harnessing the natural and human resources, setting right the imbalances and in congruencies that crept into the mainstream development processes so far,” the report explained.
The report called upon the government to give urgent attention to issues such as poor irrigation facilities, which make the lives of farmers depend on erratic monsoon and depleting ground water. It has also asked the government to make timely input and credit available to farmers and help them with required support to enhance farm productivity.
