Mallu Bhatti Vikramarka allocates ₹53,196 crore for implementing the Congress's six guarantees, ₹40,080 crore for Panchayat Raj and Rural Development
Published Feb 10, 2024 | 4:41 PM ⚊ Updated Feb 10, 2024 | 4:41 PM
Finance Minister Mallu Bhatti Vikramarka — also the Deputy Chief Minister — presenting the vote-on-account in the Telangana Assembly. (X)
Telangana’s Congress government presented a vote-on-account Budget, proposing an expenditure exceeding ₹2.75 lakh crore, on Saturday, 10 February.
The Budget placed in the state Legislative Assembly, Finance Minister Mallu Bhatti Vikramarka — also the Deputy Chief Minister in the A Revanth Reddy Cabinet — focused more on welfare schemes, including the six guarantees the Congress had made ahead of the 30 November polls.
Vikramarka estimated a total expenditure of ₹2,75,891 crore, including a revenue expenditure of ₹2,01,178 crore and capital expenditure of ₹2,01,178 crore.
While presenting the Budget, tore into the previous BRS government for the financial mess it had handed down to the Congress. He detailed the plan for putting the house in order without compromising on implementing the promises and ensuring overall development.
Touching a raw nerve, Vikramarka said he would revisit the Rythu Bandhu scheme of the previous government before implementing the Rythu Bharosa of the Congress. He said undeserving landlords and real estate businessmen, who had never raised any crops, benefited from the BRS government’s Rythu Bandhu.
“The Rythu Bandhu assistance was given to lands that were not cultivable, lands that had hillocks, and even for roads. The biggest beneficiaries were landlords owning huge tracts of lands but never engaged in farming and also real estate dealers holding thousands of acres,” he said.
“We have decided to review the scheme and implement Rythu Bharosa, providing ₹15,000 an acre to eligible beneficiaries. We have also promised to include tenant farmers who were left in the lurch by the previous government,” he said.
The vote-on-account, or interim Budget, deferred two guarantees, subsidised LPG and free power supply for domestic users, to a later date.
“Very soon, the modalities for their implementation will be finalised and the schemes will be rolled out. Further, our government is committed to implementing Rythu Bharosa, Indiramma houses, Cheyutha, and Yuva Vikasam at the earliest,” Vikramarka said.
He proposed an allocation of ₹2,418 crore for supplying 200 units of free power to eligible families and said steps were being made to implement it. He allotted ₹16,825 crore to Transco and Discoms.
The finance minister earmarked ₹53,196 crore, for the implementation of the six guarantees.
“Provision of additional funds will be made as required, once a complete assessment is made,” he said.
The minister said he was presenting the vote-on-account Budget with reluctance.
“The central government presented its vote-on-account Budget on 1 February 2024. Our government has a clear vision on how to pool resources for our plans and schemes,” Vikramarka said.
“As part of that vision, we have the clarity that we need to tap maximum funds from various central government schemes. Only a full Budget by the Government of India will enable us to make a reasonable estimate of the funds that might come to the state,” he explained.
He said the government was committed to fulfill all the promises made during the election campaign.
“The Warangal declaration for farmers, Youth declaration in Hyderabad, SC-ST declaration announced in Chevella, the BC declaration, and the Minority declaration in Kamareddy will be implemented,” he said, adding that an action plan for providing Indiramma houses was ready.
Housing sites would be given to those who do not have houses and ₹5 lakh financial assistance to those who own a site.
“The previous government failed to utilise the funds made available under the centrally-sponsored Pradhan Mantri Awas Yojana. The present government will utilise central funds optimally. I am happy to announce that 3,500 houses will be sanctioned to each Assembly constituency under the Indiramma housing scheme. For this scheme I am proposing ₹7,740 crores,” Vikramarka announced.
Allocating ₹2,543 crore to the Industries Department, the finance minister said he was proud of the ₹40,000 crore investments expected to come to Telangana, for which MoUs were signed at Davos recently.
The investments would positively impact the state’s GDP, he said.
Utilising the PM MITRA (Mega Integrated Textile Region and Apparel) funds, the state would develop Kakatiya Mega Textile Park. “We would also be setting up two leather parks with central assistance,” he said.
Vikramarka also proposed the setting up of two state-of-the-art dry ports in the landlocked state to promote exports.
Proposing an allocation of ₹774 crore for the IT sector, the finance minister said the government was in consultation with US-based IT SERVE to set up companies in tier 2 and tier 3 cities.
“This will contribute to the equitable development of Telangana in the IT field. We are also committed to making Telangana the strongest in the area of fiber network connectivity,” he said.
The finance minister also elaborated on developing the Musi Riverfront on the lines of the River Thames in London.
“We have put in place an action plan not only to clean the Musi River but also to develop its catchment area as an employment generation region,” he proposed.
“We are taking immediate measures to revive the Musi River, clean it, and develop its riverfront,” he said and added that the funding for the project would be partly raised by monetization of the riverfront. He allocated ₹1,000 core for the project.
He said the Mission Bhagiratha scheme would be remodelled to prevent recurrent problems in pipelines and storage tanks and pumping facilities.
“There is a need to rectify the mistakes in the Mission Bhagiratha programme and use it optimally to avoid a huge loss of public money. Hence, we have started
measures to rectify the defects,” he said.
He allocated a whopping ₹40,080 crore for Panchayat Raj and Rural Development to tone up the self-governance of the Panchayat Raj institutions.
Vikramarka said that the state has taken measures to revamp the revenue administration and Dharani portal. “We have constituted a five-member Committee to study the Dharani Portal and suggest measures to resolve the problems that it had created,” he said.
The Dharani portal was one of the major poll planks of the Congress.
He said that on the irrigation front, the previous government pursued a policy of benefitting the contractors but “we have a responsibility to investigate and bring to book the misdemeanors of the persons who indulged in this faulty and corrupt policy”.
The minister promised a thorough inquiry into the quality of construction, ill-conceived designs, and corruption involved in the projects of Annaram, Medigadda, and Sundilla Barrages. “Our action will be in tune with what we promised to the people,” he announced.
He said that the government was committed to getting the state’s rightful share of Krishna and Godavari waters for which it would not shy away from fighting for justice and protecting the rights of the people of Telangana.
Vikramarka said that the government aimed to complete Dr BR Ambedkar Pranahita Chevella Project, to irrigate the upper regions of the state.
“We plan to take up those projects which can be completed with less expenditure and bring more land under irrigation. The projects being considered are Alimineti Madhav Reddy Srisailam Left Bank Canal, Mahatma Gandhi Kalvakurty Lift Irrigation Scheme, Jawahar Nettempadu LIS, Rajiv Bhima LIS, Koil Sagar LIS, SRSP-Indiramma Flood Flow Canal, J Chokka Rao Devadula Lift Irrigation Scheme, and Komaram Bhim and Chinna Kaleshwaram.” he listed out the projects.
He proposed an allocation of ₹28,024 crore for irrigation projects. The finance minister blamed the BRS for the economic ruin of the state.
“The state is in a dire economic condition. Even a prosperous state like ours has been reduced to a begging bowl. The state economy has suffered tremendously. Instead of spending on infrastructure development, the government has frittered on non-essential activities. The government’s credibility suffered as it defaulted in clearing the bills for the expenditure it incurred,” he said.
Higher inflation rate in Telangana
He said the differing growth rates at current and constant prices between Telangana and India suggested a higher rate of inflation in Telangana compared to the national average.
This is further revealed by the higher Consumer Price Index in Telangana, which stood at 6.65 percent in December 2023, placing the state fifth in the country in terms of inflation rate, compared to India’s 5.69 percent.
Underscoring the need for giving priority to the Backward Classes (BCs), he said that the government has decided to spend more on Residential Educational Institutions where a majority of students from the weaker sections study.
“We will also secure additional funds from the Centre under Savitribai Phule Abhyudaya Yojana. Our government will ensure that BC scholarships are given on a regular and timely basis,” he said.
“We will also provide scholarships for students planning to study abroad under the overseas education scheme. Our government’s idea is to enable the students from the backward classes and weaker sections to concentrate on their studies and get good employment without worrying about the financials. We promise to construct buildings for BC hostels, which are now housed in private buildings,” he said, and proposed ₹8,000 crore for BC welfare.
The minister, on recruitment of students to vacancies in the government, said that the government was already working on a job calendar.
“We plan to conduct a Mega DSC (District Selection Committee). Recruitment of about 15,000 police constables has been prioritised and will be completed shortly. We have identified an additional 64 Group-I posts and have issued a go-ahead to complete the recruitment,” he stated.
“We have revamped the Telangana Public Service Commission. Further, we have released ₹40 crore, immediately required by the Commission, and also sanctioned additional staff for its smooth functioning. We are confident that the Commission will be able to initiate and complete the recruitment to various posts speedily and effectively without any scope for malpractices at any level,” he said.
He promised funds for developmental activities in all Assembly constituencies so that people’s representatives could take immediate action for important
activities.
The former government had completely neglected this area leading to unrest among the public representatives.
“Our government is committed to giving due respect and required funds to all the constituencies under the constituency development fund.
The revised estimates for 2023-24: Total expenditure ₹2,24,625 crore, of which revenue expenditure will be ₹1,69,141 crore, capital expenditure₹24,178 crore, Revenue surplus will be ₹9,031 crore, and fiscal deficit, ₹.33,786 crore.
