Telangana News | Major allocations likely for six guarantees in full budget

Hyderabad: The Congress government in Telangana may make substantial allocations of funds for implementation of its six guarantees in its first full-fledged Budget for 2024-25 to be presented in the Assembly on July 25.

Deputy Chief Minister Mallu Bhatti Vikramarka, who also holds the finance portfolio, will be making Budget proposals in accordance with the state government’s priorities.

Official sources said the Budget size may be more or less Rs 2.75 lakh crore as was proposed in the vote-on-account budget presented early this year.

It was on February 10 that Dy CM Vikramarka presented a vote-on-account Budget of Rs 2.75 lakh crore for 2024-25, down from Rs 2.90 lakh crore in the previous financial year.

He had pegged the revenue and capital expenditure at Rs 2.01 lakh crore and Rs 29,669 crore respectively.

In FY24, they were at Rs 2.11 lakh crore and Rs 37,525 crore respectively. While revenue expenditure in the full-fledged budget may remain unchanged, the capital expenditure is likely to be enhanced.

For implementing six guarantees given in the recent Assembly elections, the government allocated Rs 53,196 crore.

The Finance Department has almost completed the process of budget preparation. It received proposals from ministries and there were consultations over these.

The Cabinet meeting to be presided over by Chief Minister A Revanth Reddy will approve the budget on July 25 morning and it will be presented in the Assembly the same day.

The finance department will get some clarity on the budget proposals after the presentation of the Union budget by Union Finance Minister Nirmala Sitharaman in Parliament on Tuesday.

The proposals will be finalised after taking into account revenue in the first three months and funds and grants from the Centre.

Sources said some changes are likely in the allocations for centrally-sponsored schemes and also estimates with regard to taxes to be received from the Centre.

The allocations in the vote-on-account budget for implementation of six guarantees were based on preliminary estimates.

The government had allocated Rs 4,084 crore for free travel by women in buses of Telangana State Road Transport Corporation (TGSRTC).

The government had also allocated Rs 1,065 crore for Rajiv Arogyasri, under which the Congress government enhanced the health insurance coverage for Below Poverty Line families from Rs 5 lakh to Rs 10 lakh.

These were the only two guarantees whose implementation was launched before presentation of the vote-on-account budget.

For the 200 units per month free power scheme, the finance minister had allocated Rs 2,418 crore. The scheme was launched from March and hence this allocation may go up in the full-fledged budget.

For the Indiramma Indlu or housing scheme, the government had allocated Rs 7,740 crore in the vote-on-account budget.

Similarly, for the Rs 500 gas cylinder scheme, Rs 723 crore were provided.

The government had allocated Rs 10,000 crore for waiver of crop loans up to Rs 2 lakh. The scheme was launched last week.

For loans of up to Rs 1 lakh, the government has already released over Rs 6,098 crore. The government has announced that it will spend Rs 31,000 crore by the end of August to fully implement the scheme.

In the vote-on-account Budget, the government had earmarked Rs 15,000 crore for the Rythu Bharosa scheme. Under this scheme, which is yet to be launched Rs 15,000 will be provided to farmers as investment support for every acre annually.

The state government had made available Rs 14,800 crore for social security pensions under the Cheyutha scheme. It also allocated Rs 7,230 crore to implement the scheme of Rs 2,500 per month financial assistance for every woman.

As job creation was one of the major promises of the Congress, Rs 1,000 crore were allocated for recruitments.

Substantial allocations are also likely for the Musi River beautification project, expansion of Hyderabad Metro, Skill University and other projects of the Congress government.