The budget session of the State Assembly is expected to commence in fourth week of July.
Published Date – 3 July 2024, 07:40 PM
Hyderabad: Preparations are in full swing for presenting the first full-fledged budget of the Congress government in Telangana amid high expectations. The focus is said to be on delivering the promises made by the Congress party during the Assembly elections, which is causing considerable pressure on the State treasury.
The interim budget, or “Vote on Account,” presented by the State government in February this year, was only for four months and is set to expire on July 31. The budget session of the State Assembly is expected to commence in fourth week of July. While the Union Budget is scheduled to be presented on July 22, sources said Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka is likely to present his first full-fledged State budget within a week thereafter. He is holding review meetings with the officials of each department.
Historically, budget allocations are increase by 8-15 per cent annually. Yet, the Congress party’s extensive promises across various sectors imply an average increase of 40-50 per cent, raising concerns about budgetary control. The State government had presented a Vote on Account budget of Rs 2.76 lakh crore, which was marginally lesser that previous financial year’s budget of Rs 2.77 lakh crore. However, the full budget is expected to exceed that, considering the requirements for implementing the poll promises.
Officials are currently reviewing the State revenue over the last six months, focusing on the income from April, May, and June of this fiscal year. Additionally, strategies to boost State revenue are being evaluated, along with the costs to implement the six guarantees promised by the Congress. The finance department is also grappling with how to fund large-scale schemes such as crop loan waivers and Rythu Bharosa among others.
Major sources of State revenue include GST, Excise, Stamps and Registrations, and Sales Tax. Additionally, an average of Rs 4,000 crore is being obtained through market borrowings, grants, contributions, and the State’s share of central taxes from the RBI. Together, these sources contributed an average of Rs 15,000 crore in April and May this year.
“Considering that the Lok Sabha elections might have impacted the revenue collections, we are expecting an average monthly revenue of Rs 20,000 crore for the State. Further, the government is aiming to raise at least Rs 25,000 crore during the current fiscal through non-tax revenues including land leases, sales and mining revenue among others,” an official in the Finance department explained.
Official sources said that currently, the State treasury requires around Rs 11,000-12,000 crore for payment of salaries and pensions along with debt servicing and other mandatory expenditure. This leaves limited funds for government schemes, capital expenditures, and emergency expenditure. Consequently, officials are calculating payment schedules to clarify fund allocations for various schemes.