Budget numbers paint a gloomy picture of Telangana's financial health

Telangana CM K Chandrasekhar Rao (KCR) presented the full state Budget for 2019-20 last week. The government has projected gross state domestic product to grow at 10 per cent in nominal terms. This is slower than what was achieved in the previous two years.

KCR has projected a 10 per cent drop in revenues for the current fiscal year (Budget Estimate) and, subsequently, has cut spending by 9 per cent over FY19 (Revised Estimate). 

Income support and power subsidy for farmers, and electricity infra have been given preference. A new crop loan waiver scheme has been announced. Capital expenditure has taken a