HYDERABAD: Finance Minister T Harish Rao, while presenting the last Budget of the current Bharat Rashtra Samithi-led State government in the election year on Monday in the State Legislative Assembly, banked on three factors — confidence, hope and optimism.
The State government is confident of meeting its estimated own tax revenue of Rs 1.31 lakh crore. They hope the Centre will be generous and release the estimated grants-in-aid of Rs 41,259.17 crore, as well as the estimated Rs 17,828 crore from the Interstate Settlement and not cut the open market borrowings of Rs 40,615.68 crore. Even if the Centre is not generous, the State is optimistic about meeting its budgetary target by reaching its own tax revenue target, which will enable it to fulfil its commitments.
Thus, the Budget 2023-24 with an outlay of Rs 2,90,396 crore is nothing but a composition of being realistic in own tax revenues and unrealistic about the Centre’s generosity. Due to this typical financial situation, it seems, Harish didn’t announce any new schemes, even in election year and stuck to continuing the initiatives, which the government expects to be sufficient for the ruling party to be in the good books of a majority of voters.
Harish presented the Budget with Rs 4,881.74 crore revenue surplus and with Rs 38,234.94 crore fiscal deficit for 2023-24. This year’s Budget saw a 13 per cent hike when compared to the 2022-23 Budget, which had a total outlay of Rs 2.56 lakh crore. Out of the total Rs 2.90 lakh crore Budget estimates for 2023-24, the finance minister proposed Rs 2,11,685 crore for revenue expenditure and Rs 37,525 crore for capital expenditure.
When asked if the State would be successful in getting estimated funds from the Centre, a Finance Department source said, “Our estimates with regard to the State Own Tax Revenues (SOTR) are reasonable and realistic.
We hope that the Centre will release funds as we expect. In revenue receipts, the State showed Rs 17,828 crore power dues under Interstate Settlements, hoping that the Centre would clear this amount.
Telangana has been arguing that it had to receive power dues from Andhra Pradesh. The Centre recently cleared Rs 6,500 crore power dues to AP. So, we are hopeful that the Telangana too will get the same.” However, the finance minister revised grants-in-aid for 2022-23 to Rs 30,250.22 crore against the Budget estimates of Rs 41,001.73 crore.
Funds for crop loan waiver, 2BHK units
Yet, the grants-in-aid were again estimated as Rs 41,259.17 crore from the Centre in 2023-24 Budget too. “We have not lost hope. We are still expecting that the Centre will give funds for Mission Bhagiratha and Mission Kakatiya schemes,” sources said.
Allocation of funds has also been proposed for two pending initiatives — crop loan waiver and financial assistance of Rs 3 lakh for constructing 2BHK houses for those who have plots. For crop loan waiver of up to Rs 90,000 per farmer, Rs 6,385 crore was allocated and Rs 12,000 crore allocated for giving financial assistance for 2BHK houses. A provision of Rs 1,000 crore was also allocated for paying the salaries of employees to be recruited this year. Besides, Rs 500 crore was also proposed for universities and Rs 200 crore for implementing the KCR Nutrition Kits in all the districts.
The Budget estimates to raise Rs 40,615.68 crore in open market borrowings taking the total debt burden of the State to 3.57 lakh crore, which is 23.8 per cent of the Gross State Domestic Product (GSDP). The State proposed to raise Rs 53,970 crore loans in 2022-23. However, with the restrictions imposed by the Centre, the State revised it to Rs 44,970 crore.
No New Schemes In Election Year
Allegedly due to the typical financial situation in the State, Finance Minister T Harish Rao, didn’t announce any new schemes, even in election year and stuck to continuing the initiatives, which the government expects to be sufficient for the ruling party to be in the good books of a majority of voters. Harish presented the Budget with Rs 4,881.74 crore revenue surplus and with Rs 38,234.94 crore fiscal deficit for 2023-24