HYDERABAD: At a time, when opposition parties have been alleging that TS has been pushed into `2.2 lakh crore debt trap in the last four years under TRS rule, the latest PRS Legislative Report on “State of State Finances,’’ has a different tale to tell. The report stated that the Telangana’s expenditure on committed liabilities was under control at 31 per cent, which is the lowest compared to other states. Telangana spent 63 per cent of its budget allocations on economic development and infrastructure, which is the highest in the country for the period 2011-2019, the report stated.
According to the report, the expenditure on committed liabilities of a State typically includes expenditure on payment of salaries, pensions, and interest payments. A larger proportion of State budget allocated for committed expenditure crowds out other developmental expenditure. Between 2016-2019, 24 states on an average have spent 39 per cent of their budget on committed expenditure.
Punjab spends the most on committed liabilities, followed by Uttarakhand, Kerala, and Himachal Pradesh, report said. Telangana spends only 31 per cent on committed liabilities. The report stated that States spend 32 per cent of their budget on economic development and infrastructure.Expenditure on economic development and infrastructure creation comprises allocations made towards agriculture, irrigation, urban & rural development, housing, energy.
Between 2011 to 2019, states on an average have spent 32% of their budget on infrastructure and economic development. But, the PRS Legislative Report stated that Telangana spent the highest on economic development and infrastructure between 2011-2019. Telangana’s spending on economy was 63 per cent during the period, which was highest among all the states in the country, the report said.