Telangana Government Initiates Budget Preparation for FY 2024-25
Telangana Government has commenced the exercise for preparation of the budget for the financial year 2024-25, the first by the Congress Government which took over the reins last month.
Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka has resolved to conduct department wise meetings to analyse the schemes under implementation and to understand the requirements. Starting with the Finance department on Wednesday, the Deputy CM will review the situation of Agriculture and allied departments, Revenue, Housing, Panchayat Raj & Rural Development, Health, Roads & Buildings, Irrigation and other departments till January 27.
The exercise assumes significance as Chief Minister A. Revanth Reddy has directed the officials concerned to prepare a “realistic budget” not giving scope for speculative estimations and avoiding over/under estimations in budget preparation. The Government will have to walk a tightrope in the preparation of the annual financial statement given the constraints it has been facing in raising resources to meet its commitments.
More so, as the Congress Government is tasked with the responsibility of fulfilling its six guarantees which would require huge allocations to certain sectors at a time when the picture of finances appears to be not so rosy. In addition to working out modalities for the implementation of the six guarantees, the Government should factor in aspects like mounting debt servicing burden and the releases from the Centre like Grants in Aid and Contributions.
Telangana Government has commenced the exercise for preparation of the budget for the financial year 2024-25, the first by the Congress Government which took over the reins last month.
Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka has resolved to conduct department wise meetings to analyse the schemes under implementation and to understand the requirements. Starting with the Finance department on Wednesday, the Deputy CM will review the situation of Agriculture and allied departments, Revenue, Housing, Panchayat Raj & Rural Development, Health, Roads & Buildings, Irrigation and other departments till January 27.
The exercise assumes significance as Chief Minister A. Revanth Reddy has directed the officials concerned to prepare a “realistic budget” not giving scope for speculative estimations and avoiding over/under estimations in budget preparation. The Government will have to walk a tightrope in the preparation of the annual financial statement given the constraints it has been facing in raising resources to meet its commitments.
More so, as the Congress Government is tasked with the responsibility of fulfilling its six guarantees which would require huge allocations to certain sectors at a time when the picture of finances appears to be not so rosy. In addition to working out modalities for the implementation of the six guarantees, the Government should factor in aspects like mounting debt servicing burden and the releases from the Centre like Grants in Aid and Contributions.
Expenditure on interest payment for instance has been well above the budgetary estimates over the past few years imposing additional burden on the exchequer. While expenditure on account of interest payment was projected as Rs. 14,615 crore in 2020-21, the year ended with payment of Rs. 16,010 crore.
The same was the case with 2021-22 when the Government paid Rs. 18,688 crore interest against the Rs. 17,584 projected in the budget estimates. The situation was no different in 2022-23 when interest payment was estimated at Rs. 18,911 crore, but the actual paid was Rs. 20,952 crore, according to the provisional data available with the Comptroller and Auditor General of India.
At the same time, there was over estimation of Grants in Aid and Contributions from the Central Government. Grants in aid for the current fiscal was projected at Rs. 41,259 crore in the budget estimates and the actuals till November end stood at Rs. 4,532 crore, just about 10 per cent of the estimates. The same was the case last fiscal when receivables under the head were projected as Rs. 41,001 crore and the actuals stood at Rs. 13,179 crore, resulting in a deficit of close to Rs. 28,000 crore.
The situation was no better in 2021-22 when the Government could realise Rs. 8,619 crore as grants in aid and contributions as against the Rs. 38,669 crore projected in the budget estimates showing a shortfall of close to Rs. 30,000 crore. With scope for enhancing taxes and duties in the first year of it coming to power appearing remote, the Congress Government will have to do a fine balancing act to meet the expectations of the people and also ensure that there is no disruption in the implementation of the major schemes.
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