Telangana's 2021 Budget born out of hope more than math

HYDERABAD: Succinctly put, Finance Minister T Harish Rao’s Budget for 2021-22 is one born out of hope than conviction. Better days are likely as the Covid-19 pandemic retreats and the possibility of cash registers ringing to meet people’s ever-rising expectations -- mostly farmers, the disadvantaged sections and those seeking double bedroom houses -- increase as it is the government’s commitment to them.

The hope has made Harish Rao bolder as he presented his second but quite an ambitious budget on Thursday in the Assembly, stretching its size to more than Rs 2 lakh crore for the first time after the State’s formation. The key takeaways from the Budget are development and welfare.But, on closer scrutiny, one may wonder as to how the government would be able realise the estimated revenue since it mostly depends on the Central grants-in-aid, on which the Central government itself is non-committal. The grant-in-aid in the 2020-21 Budget is Rs 10,525 crore, but the State government expects it to be about Rs 38,669.46 crore in the Budget 2021-22, a quantum jump. 

“As the Central government has to share Rs 70,000 crore GST with States, we expect our share of the pie from this. Besides, the State is expecting to get IGST share, funds under the Jala Jeevan Mission and other schemes,” sources in the Finance Department said.

Besides, the State government also plans to augment its revenues, for which it may increase the market value of land and stamp duty. The third major source of revenue would be over Rs 45,000 crore borrowings. In fact, the size of the 2020-21 Budget shrank from Rs 1.82 lakh crore to Rs 1.5 lakh crore in the revised estimates due Covid-19 playing spoilsport. Despite this, Harish Rao presented a Rs 2,30,825.96-crore Budget for 2021-22. Confident of the State’s tax buoyancy, the Minister announced several new schemes for education to provide basic amenities at government schools and others this time.

If, for any reason, the estimated revenues is not realised and if the Centre does not release the funds as expected, the welfare programmes will be in a soup. The proposed new plans may take a back seat in such an eventuality. 

Unkept promises
As Harish Rao could not fulfil the assurances given in his first Budget, he said these would be implemented this time. The unfulfilled assurances include 2BHKs and farm loan waiver