The demonetisation of high value currency notes by the Centre has impacted the revenue collections of Telangana, state Finance Minister E Rajender said in his Budget speech here today.
"There is a reduction in the grants from the Centre. Because of court cases, sale of lands did not take place. Arrears of commercial taxes could not be recovered because of litigations. The demonetisation of high value currency notes has also affected revenue collections. All these matters are beyond the control of the state government," Rajender said while talking about Revised Estimates 2016-17.
As per the Revised Estimates, the total expenditure in 2016-17 is estimated at Rs 1,12,191.07 crore, which is 86.02 per cent of the Budget Estimates, he said.
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Rajender presented a tax-free, welfare-oriented budget focusing on irrigation and reviving traditional occupations of backward classes for 2017-18 with a proposed expenditure of nearly Rs 1.50 lakh crore in the Legislative Assembly today.
Talking about the current macro economic situation in the state, he said as per the latest estimates, Gross State Domestic Product growth at constant prices in 2016-17 is likely to be in double digits at 10.1 per cent as compared with the expected national GDP growth of 7.1 per cent.
Observing that strengthening rural economy would lead to the overall progress in the society, he told reporters that the budget sought to boost agriculture and traditional rural occupations.
Welfare of various sections was a major focus area in the budget with an allocation of about Rs 35,000 crore, he said.
Replying to a query on Public Debt Outstanding, he said it was a total of Rs 93,115.16 crores in 2015-16, Rs 1,14,813.82 crores in RE (Revised Estimates) of 2016-17 and Rs 1,40,523.17 crores in Budget Estimates of 2017-18.
According to the state government's 'Telangana Budget in Brief 2017-2018' document, the Government Guarantees Outstanding was a total of Rs 31,453.04 crores as on January one, 2017. It includes Rs 9,732.51 crores on power and Rs 21,720.53 crores on 'Others'.
(Reopens BES 12)
The budget would give a boost to the development, Chief Minister K Chandrashekhar Rao said.
"The CM is hopeful that the Budget will strengthen the rural economy. He hailed the Finance Minister for giving equal importance to all sectors," a release from the Chief Minister's Office said.
Opposition Congress criticised the budget, alleging that the government had thrown the people of Telangana into a "debt trap".
Even the flagship schemes were debt-funded and there was no proper allocation for them, said the state Congress president Uttam Kumar Reddy.
CII Telangana welcomed the budget saying it carried forward the series of welfare measures initiated after the bifurcation, especially in sectors such as irrigation, rural development and social development.
"Despite demonetisation causing economic disruption, Telangana registered a high growth of 19.61 per cent, which is a phenomenal achievement and was possible primarily due to proactive policy measures by the State Government like TSiPASS (Telangana State Industrial Project Approval and Self- Certification System) that ensured investment of 58,341 crore with an employment potential of 2.20 lakhs," said the newly-elected Chairman of CII Telangana V Rajanna, Vice President & Regional Head, TCS.
"We appreciate the move to develop other centres of growth through special focus on decentralised planning. A Textile Park at Warangal and Sircilla is a welcome step," Rajanna added.
