The Finance Minister in February announced a ₹2.75 lakh crore vote-on-account Budget, while the budget for 2023-24 was ₹2.90 lakh crore.
Vikramarka noted that Telangana’s growth rate for 2023-24 was 7.4%, slightly behind the national growth rate of 7.6%.
Telangana’s Gross State Domestic Product (GSDP) for 2023-24 was ₹14,63,963 crore, an 11.9% increase from the previous year.
Under Congress state government, Budget allocation in Telangana for Minority welfare department has increased to a whopping Rs 3,003 crores. The spend is up from Rs 2,200 crores in 2023-2024 under previous BRS government.
Interestingly, budgeted expenditure on Schedule Caste… pic.twitter.com/eRSfRXDi1Z
— Rahul Shivshankar (@RShivshankar) July 25, 2024
For the same period, the services sector made up 65.7% of Telangana’s Gross State Value Added (GSVA), the industrial sector contributed 18.5%, and agriculture and related sectors added 15.8%.
Telangana’s per capita income in 2023-24 was ₹3,47,229, which is ₹1,64,063 higher than the national average of ₹1,83,236.
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Vikramarka pointed out that the state’s growing debt compared to its income growth could threaten fiscal stability. He warned that unless strict fiscal reforms are made, Telangana’s economic health could be at risk, highlighting the need to balance spending with revenue and reduce borrowing.
Since the new government took office in December 2023, the state’s debt has been ₹6,71,757 crore. The government has borrowed ₹35,118 crore and repaid ₹42,892 crore, effectively reducing debt by ₹7,774 crore more than it borrowed.
The Finance Minister emphasized that despite the tough financial situation, the government has prioritized public welfare, spending ₹34,579 crore on various schemes. This includes the Maha Lakshmi Scheme, which offers free bus rides for women, free electricity up to 200 units, farmer assistance under Rythu Bharosa, and rice subsidies. Capital expenditure reached ₹19,456 crore.
Significant funds have been allocated for implementing campaign promises, including increases for agriculture, welfare of backward classes, rural and urban development. The agriculture budget has risen to ₹49,383 crore from ₹28,594 crore, and the budget for Backward Classes Welfare has more than doubled to ₹9,200 crore. Allocations for minority and tribal welfare have also increased.
The Finance Minister proposed ₹723 crore for subsidizing LPG cylinders at ₹500 and ₹2,418 crore for free electricity up to 200 units (Gruha Jyothi Scheme). Despite financial challenges, the government is securing ₹31,000 crore for a farm loan waiver scheme of up to ₹2 lakh.
Additionally, the government has issued appointment orders for 31,768 jobs and is committed to creating new jobs in government and public sector organizations.
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