Harish Rao’s Budget leaves many questions unanswered


Telangana Budget 2020-21 presented by Finance Minister Harish Rao has raised the following doubts which need to be answered.

  1. When compared to the last Taking into account the last year estimation of total Outlay of Rs.142,152 crore, the present budget size of Rs 182,914 crore is excess by a whopping Rs.40,762 crore. Wherefrom these additional funds would be raised was not disclosed in the FM speech. The only hint given was that by auctioning Housing board plots and Rajeev Swagruha flats, the funds will be accrued. Whether it fetches additional revenue of Rs.40,762 crore or not has not been clarified.
  2. Fiscal Deficit of Rs.33,191.25 crore was declared for 2020-21, so that much loans to be raised freshly. The last year 2019-20 Fiscal deficit estimated was Rs.24,081 crore. But CAG declared actual position as at 31-1-2020 was a deficit of Rs. 26,383 crore. By 31-3-2020 it may reach Rs.29,000 crore due to economic Slowdown and low tax collection.
  3. Tax collection position is not encouraging. As data submitted by the Finance Department, up to 31-1-2020 total receipts including taxes and grants received was Rs.105,922 crore for 10 months period whereas the estimate for full-year was Rs.137,226 crore. That means only 77.19% was achieved. For full-year it maybe 92% only. So the situation is fluid.

Total expenditure until March end 2020 was Rs.98,808 crore. Loan amount repayed was Rs.7114 crore (interest already accounted in expenses). Hence Fiscal defit = Revenue receipts 105,922 – capital receipts of 26,434 plus other income 51 crore minus total expenditure 98,808 & loan repaid 7114. = 26,383 crore.

That means the government could not control the Fiscal deficit estimations in just 10 months period. It increases further by March End.

Let us see the Department-wise allocations for 2020-21

  • School education was given Rs.10,421 crore and Higher secondary was given Rs.1723 crore. This is for salaries of teachers only. No amount allocated for amenities in School.
  • Minorities were allocated Rs.1518 crore only when compared to Rs.2000 crore in 2019-20.
  • MBC were allocated Rs.500 crore when compared to Rs.1000 crore in 2019-20.

YSRCP Government’s effect seems to be there on this budget:

  1. Asara pensions age limit was reduced from 63 years to 57 years. Thus allocation was increased to Rs.11,758 crore from the last year’s (2019-20) Rs 9402 Crore in 2019-20).

2. Market intervention Fund created for giving input support prices for farmers with Rs.1000 crore.

3. English medium will be introduced in Govt schools.

Funds for Hyderabad

Rs.10,000 crore was allocated for Hyderabad including Development of Musi river Front

But in 2016-17, cleaning of Hussain Sagar was promised and provision was also created in the budget but nothing worked out especially creating Vinayak Sagar for Ganesh Nimajjan etc.

Despite reminders from 2014, the Indian Railways has a share of Rs.450 crore in MMTS Phase-2. But it was not released any amount except Rs130 crore last year.

The government has released meagre amounts for the completion of long-pending projects like Devaadula, Koila Sagar, Bheema and Nettempadu. Huge amounts were allocated for New projects Kaleswaeam and Seerarama Bhadradri project.

Positive features

  1. For double bedroom scheme, Rs.10,500 crore allocated to complete some of the houses started in 2018 and 2019.
  2. Rs.500 crore allocated for Police Command Control Towers in Banjara Hills.
  3. Panchayat Raj was allocated Rs.23,005. It is a good move.
  4. Rythu Bandhu was given Rs.14,000 crore.
  5. As promised in 2019 state elections, Rs.6225 crore was allocated for Agri Loan Waiver.

Necessities at Cross Road

  • Four or five 100 bed hospitals to be planned in Uppal, Kukatpally, ECIL, Pahadi Shareef and Vanastalipuram.
  • AIMS to be established within Hyderabad city at Chest Hospital area or in Banjara hills area near Basava Tarakam hospital.
  • One cancer hospital to be established in Hyderabad.
  • Medical College in Adilabad and Medak to be established.