Hyderabad: The Telangana Assembly on Friday approved the Finance Bill with a budgetary estimate of Rs 1,00,640 crore for the ten-month period of 2014-15 even as Chief Minister K Chandrasekhar Rao stressed on the need for "fiscal prudence".
The six-month old state received an income of Rs 25,947.97 crore so far this fiscal with the state’s own tax revenue touching Rs 15,101 crore, the Chief Minister announced.
Replying to the debate on the budget in the Assembly, the Chief Minister said the current budget was not full-fledged as there was no clarity yet on the devolution of funds from the Government of India.
"There is a new government at the Centre and it has not yet finalized its policy formulation. There could be changes in many Central schemes like MGNREGS, housing, JNNURM, etc. I will meet the Prime Minister and other Union Ministers soon to discuss these issues and we will present a full-fledged budget for the next financial year much before March 31," the Chief Minister said.
Since Telangana was a new state, it had sought enhancement of borrowing limit under the Fiscal Responsibility and Budget Management Act.
"The Centre has asked us to furnish more details in this regard. We are actively following up on that," he added.
The Chief Minister explained that the state’s own tax revenue was expected to be Rs 35,378 crore and non-tax revenue Rs 13,242 crore as per the current trends.
A sum of Rs 21,720 crore was expected from the Centre in the form of Grants-in-Aid.
KCR said welfare of the poor was his government’s top priority.
"That we are going to spend Rs 3600 crore-Rs 4000 crore on social security pensions is an indication of our commitment towards welfare. At the same time, our thrust is also on development with focus on key sectors like agriculture," he added.
Referring to the tanks improvement programme, entitled Mission Kakatiya, the Chief Minister said 45,000 small and medium village tanks would be improved/restored in the next five years at an estimated cost of Rs 35,000 crore.
"The World Bank has come forward to fund this programme but laid out certain terms. I rejected those terms saying ‘you cannot govern us’. We will go to Japan International Co-operation Agency for funds," the Chief Minister said.
Noting that the international market was “flush with funds", KCR said they could be tapped if fiscal prudence was observed.
"We need to maintain fiscal discipline and responsibility as well,” he said.
The Chief Minister said a sum of Rs 4250 crore was released to banks as first instalment towards the agricultural loan waiver scheme.
Another Rs 12,000 crore would be released in three instalments, along with interest.
Vowing that the TRS would not seek votes in 2019 if it did not complete the proposed Water Grid, KCR said the ambitious project would ensure supply of treated drinking water to each and every household across Telangana in the next four years.
"This is a Rs 35,000 crore project and we have formed a separate corporation to implement it. I have discussed the project with the Prime Minister who promised financial assistance from the Centre," he said.
Earlier, Congress senior MLA N Uttamkumar Reddy wondered if the government would be able to implement the Rs 1 lakh-crore budget.
"Our assessment is that the government may get only Rs 75,000 crore in revenue. Then, how will you reach the Rs one lakh crore target," he questioned.
Telugu Desam Legislature Party leader Errabelli Dayakar Rao demanded that the TRS government implement all the promises it made ahead of the elections.
Majlis-e-Ittehadul Muslimeen leader Akbaruddin Owaisi reiterated his demand that the government publish a white paper on the state’s finances.
Leader of Opposition K Jana Reddy said they were fully supporting the Finance Bill and said they would cooperate with the government in development.
