- Fiscal deficit put at Rs.33,191.25 crore
Hyderabad: The Telangana government on Sunday presented a ‘jumbo budget’ for 2020-21 in the Legislative Assembly.
Although, it spoke about dwindling revenues and cuts in Central grants due to the impact of economic recession, it increased the budget size significantly over last year’s.
Finance Minister T. Harish Rao, who presented the Budget for the first time, has pegged the budget size at Rs.1,82,914.42 crore. Out of this, the revenue expenditure has been pegged at Rs.1,38,669.82 crore and capital expenditure at Rs.22,061.18 crore. The revenue surplus was estimated at Rs.4,482.12 crore, while the fiscal deficit stands at Rs.33,191.25 crore, approximately.
It may be recalled that Chief Minister K Chandrasekhar Rao (KCR), who had presented the Budget, had slashed last year’s budget size by 20 per cent citing ‘economic recession’. It was further slashed in the Revised Budget estimates submitted to the Assembly on Sunday from Rs 1.46 lakh crore to Rs 1.42 lakh crore. KCR assured to present ‘realistic budget’ again for 2020-21 as the recession continues to hit the state’s economy.
Harish Rao stated “As per the Finance Accounts of the State Government certified by the Accountant General, the total expenditure in 2018- 19 financial year is Rs.1,57,150.80 crore. The Revenue surplus is Rs.4,337.08 crore. Fiscal Deficit is Rs.26,943.87 crores.
Explaining the backgrounder, he said “This Budget has been prepared against the backdrop of overall economic slowdown gripping the Indian economy. As a result, there is a reduction in tax devolution and other transfers to the State by the Centre and a decline in the growth of state revenues. There is an immediate need to keep up the growth momentum in the State. The tax devolution from Centre to the State is expected to be lower in 2019-20 by Rs.3,731 crore as compared with the budget estimates. There are delays and shortfalls in the release of State’s share in Integrated Goods and Services Tax and GST compensation. Following the economic slowdown, the growth of the State’s own revenues in 2019-20 (till the end of February) is estimated to be at 6.3%, much below the growth of 16.1% achieved in 2018-19. 3. On top of this, following the recommendations of the Fifteenth Finance Commission, there will be a reduction in the share of Telangana in Central tax devolution from 2.437% to 2.133 % resulting in a reduction of tax devolution by an amount of Rs.2,384 crore in 2020-21. Let me assure the Hon’ble Members that despite these adverse developments, which are beyond our control, the Government is confident of overcoming the situation with appropriate strategies and keep up the growth momentum in the State. 3 4. As per the Budget for 2019-20 presented in September 2019, an amount of Rs.1,36,000 crores will be spent by March-end. Even though there was a reduction in share in Central taxes, grants from the Centre, these shortfalls are being overcome with State’s own sources and we should be spending as per the budget estimates.”