The State is considering to go for Vote-on-Account Budget instead of a full-fledged Budget following the decision of the Central government to go for an interim budget in view of the Lok Sabha elections in May when the incumbent government will complete its five-year tenure.
A full Union Budget not only presents the annual finances of the government but can also revise its existing tax slabs, announce sops to various sections and schemes to reflect its economic policy for the year.
In an election year, it is the tradition for incumbent government to present only vote on account, i.e. to seek approval for the proposed expenditure to be incurred in the next few months till a full budget is presented by the new elected government.
Technical reasons
In Telangana, a new government is already in place and it can go ahead with a regular Budget like every year. But there is a thinking that it makes sense to opt for vote on account for technical reasons.
For it is the norm for the States to present their Budget only after the Central government presents its full budget. This is because the States can get an accurate estimate of the Central funds and grants for various Centrally sponsored schemes only after the Union Budget.
Central schemes
In the absence of exact information about the Central grants, States will not be able to present an accurate revenue and expenditure proposals. States, apart from their Own Tax Revenue, depend on Central grants to formulate their schemes and programmes and accordingly tailor their allocations to various programmes.
The Telangana Rashtra Samithi government under the leadership of Chief Minister K. Chandrasekhar Rao, which got a second term in the December elections has promised enhanced monetary benefits under various programmes like Aasara, Rythu Bandhu, unemployment allowance and farm loan waiver, among others.
Welfare agenda
The State government will be in a better position to make annual allocations to its welfare and development agenda based on the actual amount of Central grants to its kitty, according to sources. More so, many political parties apart from the ruling Bharatiya Janata Party led National Democratic Alliance have been hinting at various Direct Benefit Schemes to help farmers and other sections of society in the run up to the Lok Sabha elections. “Thus it makes sense to wait for the new Union Government’s full Budget,” they said.
Department proposals
However, senior officials said all the departments were busy preparing their regular budget proposals for 2019-20. “At this stage all options are open. We are working on both the tracks as we can’t be caught unawares as the exercise for the regular and Vote on Account is mostly same. By January-end, a final decision will be taken to go for Vote on Account or regular Budget,” official sources said.