Telangana Budget is presented in State Assembly, Telangana’s economic landscape is under the focus with the recent presentation of its 2024-25 budget, which lays out a detailed plan for economic renewal and development. The budget, led by Deputy Chief Minister and Finance Minister Bhatti Vikramarka Mallu, outlines an organised allocation of resources targeted at addressing major areas of concern while promoting long-term growth. In this extensive analysis, we will look at the important features and ramifications of Telangana’s budgeting decisions for the coming next financial year.
Telangana Budget 2024-25 Budget Overview
The Telangana government has allocated ₹2,75,891 crore for the financial year 2024-25, indicating a commitment to improving the state’s economic performance.. Notably, this allocation reflects a meticulous approach towards balancing revenue and capital expenditures, with ₹2,01,178 crore designated for revenue expenditure and ₹29,669 crore allocated for capital expenditure.
Addressing Economic Challenges
The budgetary address of Finance Minister Mallu emphasises the enormous problems faced by the state’s economy, which is in “dire” condition. The story of economic duress is heightened by a legacy of mismanagement and mistaken priorities, as underscored by the Minister’s condemnation of the former regime’s budgetary policies.
Gross State Domestic Product (GSDP)
Telangana’s total earnings increased from ₹13,02,371 crore in 2022-23 to ₹14,49,708 crore in 2023-24, indicating stronger company performance. However, despite earning more money, our economy’s growth rate fell from 14.7% to 11.3% throughout that time. However, our growth rate was still 2.4% greater than the national average, indicating that we were performing better than other states.
The farming sector had a tough time, mainly because of bad weather and not having enough water. This decline in farming highlights the need to help farmers better so they can still make a living and produce enough cultivation.
Secondary and Tertiary Sectors
On a brighter side, sectors including as manufacturing, real estate, construction, and mining showed promising growth rates, highlighting Telangana’s varied economy. The manufacturing industry, in particular, expanded at a rate of 5.9%, highlighting its critical role in job creation and industrial development.
The budgetary allocations underscore a strategic emphasis on infrastructure development, encompassing key initiatives such as the establishment of dry ports, pharma clusters, and micro-industrial units. These measures are expected to promote a shift in economy and increase the state’s competitiveness on a regional and global scale.
Social Welfare Schemes
In line with the government’s commitment to inclusive growth, substantial provisions have been made for flagship social welfare schemes, including the Gruha Jyothi scheme and the Indiramma housing scheme. These initiatives signify a concerted effort towards alleviating socioeconomic disparities and fostering equitable access to basic amenities.
Economic Stimulus Measures
The budget aims to boost the economy by helping sectors like farming, healthcare, and tech. For example, giving free power to farmers and improving healthcare show the government’s commitment to supporting long-term growth.
Leveraging Technological Advancements
Information Technology (IT) Sector
Telangana’s significant resource investment towards advancing the Information Technology (IT) sector demonstrates the state’s dedication to developing technologies. The administration is trying to establish Telangana as a leader in the digital space with projects like the creation of IT clusters and the introduction of a new IT policy.
The setup of ports and the development of transportation infrastructure demonstrate Telangana’s strategic goal of increasing connectivity and facilitating trade. The government intends to promote economic growth and investment inflows by utilising centrally sponsored schemes and private sector partnerships.
Engagement with Multinational Corporations (MNCs)
Telangana’s active engagement with multinational corporations, as indicated by consultations at famous venues such as the World Economic Forum in Davos, demonstrates a concentrated attempt to attract investment and boost economic growth. Investments of up to ₹40,000 crore are intended to increase job creation, technical innovation, and sector diversification, improving the state’s global competitiveness.
Public-Private Partnerships (PPPs)
The government recognises the critical role that private sector participation plays in constructing infrastructure and stimulating the economy. Telangana hopes to generate win-win situations by encouraging public-private collaborations. They are implementing legislation and providing incentives to encourage firms to invest and contribute to growth.
Harnessing Human Capital
Education and Skill Development
Understanding the importance of people in driving economic progress, Telangana’s budget gives a big focus on education and skill-building programs. By putting money into schools, vocational training, and partnerships between industries and universities, the government wants to make sure people have the right skills to succeed in a changing job market.
Healthcare and Well-being
The government is really pushing to ensure everyone has access to top-notch healthcare. They’re planning to beef up hospitals, update our healthcare systems, and set up health insurance options. It’s all about making sure each and every one of us stays healthy and happy.
Sustainable Environmental Practices
The Telangana budget indicates an essential commitment to sustainable environmental policies and conservation measures. The government’s appropriations for activities such as afforestation, water conservation, and pollution control measures aim to protect natural resources, minimise climate change consequences, and promote ecological sustainability for future generations.
In line with its commitment to renewable energy transition, Telangana aims to ramp up investments in solar, wind, and other clean energy sources. By leveraging renewable energy technologies and incentivizing adoption at both the individual and industrial levels, the state endeavors to reduce carbon emissions, enhance energy security, and foster a greener, more sustainable future.
Inclusive Development Agenda
Social Welfare Schemes
The budget reaffirms Telangana’s unwavering commitment to inclusive development through the implementation of targeted social welfare schemes. Initiatives such as financial assistance to marginalized communities, housing schemes for the homeless, and support for women and child welfare programs underscore the government’s resolve to address socio-economic disparities and promote social cohesion.
Empowerment of Marginalized Communities
Telangana’s budgetary provisions include measures aimed at empowering marginalized communities through targeted interventions and affirmative action. By ensuring equitable access to resources, opportunities, and representation, the government seeks to uplift the socio-economic status of marginalized groups and foster a more inclusive and equitable society.
Telangana Budget 2024-25 Key Highlights
- Budget Outlay for 2024-25: ₹2,75,891 crore with an allocation of ₹53,196 crore for the six guarantees promised by the ruling Congress party.
- Expenditure Breakdown:
- Revenue Expenditure: ₹2,01,178 crore
- Capital Expenditure: ₹29,669 crore
- Financial Status:
- Expenditure in 2022-23: ₹2,04,523 crore
- Revenue Surplus: ₹5,944 crore
- Fiscal Deficit: ₹32,557 crore
- GSDP and Economic Growth:
- GSDP in 2023-24: ₹14,49,708 crore
- Economic Growth Rate: Declined from 14.7% to 11.3% in 2023-24
- Concerns and Reforms:
- Dire Economic Condition: Blamed on misdeeds of previous rulers, reduced to a “begging bowl”.
- Budget Focus: People’s overall development, curbing wasteful expenditure, and fiscal discipline.
- Sectoral Allocations:
- Health Budget: ₹11,500 crore, down by ₹661 crore from previous year.
- Industries: ₹2,543 crore proposed.
- Information Technology: ₹774 crore proposed.
- Housing Schemes: Allocation for Gruha Jyothi and Indiramma schemes.
- Infrastructure and Development Initiatives:
- Musi River Beautification: ₹1,000 crore proposed.
- Ports and Pharma Clusters: Plans for setting up dry ports and pharma clusters.
- Investments: Expectations of investments up to ₹40,000 crore from MNCs.
- Social Welfare Measures:
- Free Power to Farmers: Continuation of policy by previous Congress government.
- Healthcare: Revamped Rajiv Aarogyasri scheme, doubling medical treatment limit.
- Transportation: Support for free RTC bus transport facility for women.
- Challenges and Agriculture Decline:
- Decline in Agriculture: Decrease in Gross Value Added due to adverse weather conditions.
- Inflation: Higher inflation rate in Telangana compared to national average.
- Government’s Commitment:
- Fulfilling Election Promises: Pledges to implement promises made during election campaigns.
- Restoration of Credibility: Aim to restore credibility through transparent financial management.
Frequently Asked Questions (FAQS)
1. What is the total budget outlay for Telangana in the fiscal year 2024-25?
- The budget outlay for 2024-25 is ₹2,75,891 crore.
2. How much has been allocated for the six guarantees promised by the ruling Congress party?
- ₹53,196 crore has been allocated for the six guarantees.
3. What are the key components of expenditure in the budget?
- The budget breakdown includes ₹2,01,178 crore for revenue expenditure and ₹29,669 crore for capital expenditure.
4. What were the expenditure and financial status for the previous fiscal years?
- In 2022-23, expenditure was ₹2,04,523 crore, with revenue surplus at ₹5,944 crore and fiscal deficit at ₹32,557 crore. For 2023-24, estimated total expenditure was ₹2,24,625 crore, with revenue surplus at ₹9,031 crore and fiscal deficit at ₹33,786 crore.
5. What is the Gross State Domestic Product (GSDP) and economic growth rate for Telangana?
- GSDP increased from ₹13,02,371 crore in 2022-23 to ₹14,49,708 crore in 2023-24, with a decline in economic growth rate from 14.7% to 11.3% during the same period.
6. What are the major concerns addressed by the Finance Minister in the budget speech?
- The Finance Minister highlighted the dire economic condition, attributed to misdeeds of previous rulers, and emphasized the focus on fiscal discipline and people’s welfare.
7. What are some key sectoral allocations mentioned in the budget?
- Allocations include ₹11,500 crore for health, ₹2,543 crore for industries, and ₹774 crore for information technology.
8. What infrastructure and development initiatives are proposed in the budget?
- Initiatives include Musi River beautification with ₹1,000 crore proposed, setting up dry ports, and pharma clusters.
9. What social welfare measures are highlighted in the budget speech?
- Measures include continuation of free power to farmers, revamped healthcare schemes, and support for free RTC bus transport facility for women.
10. What are some of the challenges faced by Telangana’s economy, as mentioned in the budget speech?
- Challenges include a decline in agriculture due to adverse weather conditions and higher inflation compared to the national average.
Briefly stated, the Telangana budget for the financial year 2024-25 focuses on addressing the state’s economic difficulties while prioritising people and infrastructure. With a budget of ₹2,75,891 crore and significant expenditures in healthcare, industries, and technology, the administration aims to propel the state towards success. Despite challenges such as a reduction in economic growth and inflation, the budget shows that the administration is serious about managing money effectively. Telangana wants to overcome obstacles and improve the lives of its residents by maintaining commitments, rebuilding trust, and making smart decisions.