Hyderabad: Finance minister Etela Rajender departed from convention in the 2016-17 Budget that he presented in the TS Assembly on Monday, proposing planned expenditure higher than that of non-plan.
The Budget, with an outlay of Rs 1.30 lakh-crore, puts plan expenditure at Rs 67,630 crore and non-plan expenditure at Rs 62,785 crore, besides revenue surplus of Rs 3,718 crore and fiscal deficit of Rs 23,467 crore.
The state’s own revenue receipts were estimated at Rs 72,412 crore and transfer of funds from the Centre at Rs 28,512 crore.
Despite the revised estimates for last year’s Budget (2015-16) indicating an expenditure of Rs 1 lakh-crore of the total outlay of Rs 1.15 lakh crore, (nearly 86 per cent) the government opted for a ‘jumbo Budget’ again this year.
Revenue surplus for last year was also revised to Rs 60.54 crore and fiscal deficit at Rs 912 crore.
Anticipating the Centre would relax FRBM norms for TS, being a revenue-surplus state to secure more loans (up to 3.5 per cent of the state’s GDP) against the mandated 3 per cent, the Budget estimated the fiscal deficit at Rs 23,467 crore, which is 3.5 per cent of the GSDP.
The irrigation sector got a major chunk of funds with an unprecedented allotment of over Rs 25,000 crore in line with Chief Minister K. Chandrasekhar Rao’s plans of taking up new irrigation projects and redesigning the existing projects on a war footing.
Next on the list were the Panchayat Raj and rural development, medical and health and welfare departments.
Interestingly, the portfolios being held by CM’s son K.T. Rama Rao and his nephew T. Harish Rao got a lion’s share in the Budget.
While the outlay was higher compared to last year’s Rs 1.15 lakh-crore, it is lesser that AP’s Budget’s outlay of Rs 1.35 lakh-crore.
“This is an unprecedented Budget in the country as the planned expenditure is higher than non-plan. This has been done without compromising on non-plan commitments by a combination of rationalisation of expenditure and resource augmentation. Last year, we fell short of Budget expenditure by 14 per cent due to less than expected funds received from Centre and through sale of lands due to court cases,” Mr Rajender said.
Stating that the GSDP has been improved significantly after the formation of TS despite two consecutive droughts, he said GSDP was estimated to grow by 11.7 per cent in 2015-16, which is higher than the national average of 8.6 per cent.
Mr Rajender said the per capital income of the state at current prices has increased by 10.7 per cent to Rs 1.43 lakh, which is much higher than the national average of Rs 93,231.
Tax defaulters on radar
Finance minister Etela Rajender said that the TS government would do everything possible to mop up financial resources to fund its welfare and developmental programmes, including taking action against tax defaulters.
Mr Rajender, who presented the highest-ever Rs 1.30 lakh-crore Budget on Monday, said that the TS government would also take steps to recover Rs 4,000 crore in commercial tax and other tax disputes.
“We are focussed on how to raise resources. Besides market borrowings, we will mobilise funds within the state for our projects by plugging loopholes, settle tax disputes and expand the tax net. We have a very bright future,” he said.
Mr Rajender said that the pending LRS and BRS scheme would also fetch revenues, adding Stamps and Registration revenues and commercial taxes have shown a phenomenal increase in tax revenues.
“Our top priority is welfare, agriculture, private industry, IT, employment, health and power. We have also cut certain outdated schemes and identical schemes and pruned it to 460 from 840. We did not kill the spirit,” he said.
Mr Rajender was interacting with the media after calling on the Chief Minister. He narrated the sequence of events that led to formation of the state, doubts raised by some that T-people cannot manage the state, launch of various successful schemes and programmes and turning TS into a cash-rich state.
“Our biggest achievement is that we buried all such doubts and provided a strong, vibrant and stable government under strong leadership. GSDP growth of 17.7 per cent is highest in the country as against national average of 8.6 per cent. You will see accelerated development in 2016-2017. Hyderabad is the safest city,” he said.
