Despite the fall in revenue during the last two years due to the COVID pandemic and reduction in central assistance, Telangana remains in a strong financial position.
With a higher growth rate and per capita income than many large states, India’s youngest state has become the fourth largest contributor to the national GDP in less than eight years and a major contribution to the nation in welfare and development. Claims to be a model.
As per the Budget Estimates for 2020-21, Telangana’s estimated outstanding debt will be over Rs 2.86 lakh crore. However, economists say that the state has the ability to manage debt.
According to a study paper released by the Reserve Bank of India (RBI) last month, Telangana’s debt-GSDP ratio is among the lowest in the country, reflecting the state’s financial health.
The research paper shows that Telangana’s State Performance Composite Index (SPCI) has improved based on annual data between 2014-15 and 2018-19. The SPCI measures both the financial performance and market development of the states.
Telangana’s average debt to Gross State Domestic Product (GSDP) was 16.1 per cent from 2014-15 to 2018-19, which is the lowest among states in the country.
State Finance Minister T. Harish Rao dismissed the claims of opposition parties that the Telangana Rashtra Samithi (TRS) government has pushed the state into a debt trap, saying Telangana is one of the least debt-ridden states in the country. Is.
Harish Rao had told the Assembly last year that Telangana’s debt burden is only 22.8 per cent of GSDP, which is within limits under the FRBM Act. Telangana was then ranked third from the bottom in the country.
The debt burden of the Center is 62.2 per cent of GDP while the debt burden of Telangana is only 22.8 per cent of GSDP, he said.
RBI also recently revealed that Telangana is the fourth largest contributor to the country’s economy. According to Handbook of Statistics on the Indian Economy 2020-21, the Net State Value Added (NSVA) by Telangana at current prices in the country increased from Rs 4,16,930 crore in 2014-15 to Rs 8,10,503 crore in 2020-21.
Leaders of the ruling TRS say that this contribution is significant considering the fact that Telangana is the 11th largest state in terms of geographical area and 12th in terms of population.
According to the Telangana State Statistical Abstract Report released this week, provisional estimates show that Telangana’s GSDP in 2020-21 stood at Rs 9,80,407 crore at current prices. Between 2012-13 and 2020-21, Telangana’s average annual GSDP growth rate was 6.8 percent and India’s GDP growth rate was 5.1 percent.
The state presented a budget of Rs 2.31 lakh crore for 2021-22 despite the pandemic affecting the economy immensely. The budget in the year 2020-21 was Rs 1.82 lakh crore.
The budget for FY22 included revenue expenditure of Rs 1.69 lakh crore and capital expenditure of Rs 29,046 crore. The fiscal deficit increased to Rs 45,509 crore from Rs 33,191 crore in the previous fiscal.
The growth rate of Telangana is increasing continuously. In the year 2018-19, it was 9.8 percent as against the GDP growth rate of 6.5 percent.
In another key performance indicator, Telangana’s per capita income increased from Rs 91,121 in 2011-12 to Rs 2,37,632 in 2020-21. This is in contrast to the all-India average of Rs 1,28,829 in 2020-21 from Rs 63,462 in 2011-12.
The latest data from the Center for Monitoring Indian Economy shows that the state has the lowest unemployment rate of 0.7 percent.
Economist Papa Rao is of the view that Telangana has no financial concerns as it is doing well despite not getting support from the Centre.
Some loans were taken improperly, but the state has the capacity to manage them, he said. It can generate its own resources.
He said that the tax revenue of the State has increased during the current year. However, he said the state should be careful in raising fresh loans.
According to him, Telangana has emerged as a progressive state in a very short span of time and Hyderabad is attracting massive investment as a growth engine. The state has created assets in the form of irrigation projects and Mission Bhagiratha, which envisages supply of drinking water to every household.
Papa Rao said, there are 50 lakh Dalit families in the state. It is very difficult to raise such a huge fund. This may take many years and may not yield the desired results.
Pointing out that the majority of Dalits are agricultural labourers, the economist said that distribution of land instead of cash would have been more practical.
With a welfare budget of over Rs 40,000 crore, the state claims to be number one in terms of welfare schemes in the country. It is implementing welfare schemes ranging from social security pension to various categories, for marriage of poor girls, Rythu Bandhu under which each farmer gets Rs 10,000 as annual investment assistance for every acre.
However, opposition Congress party leader Dasoju Shravan says that welfare programs should ultimately empower the people.
“Despite Rythu brothers, farmers’ suicides have not stopped,” he said. During the last 4-5 years 8,000 farmers have ended their lives. Farmers do not want brothers, they want minimum support price for their hard earned crops and market support for agricultural produce.
Congress national spokesperson believes that the TRS government is focusing more on programs to attract voters but not on voter empowerment programs. Due to this the state has been entangled in a serious debt trap and today we are an economically bankrupt state, he said. We don’t have money for salaries and we don’t have money to pay contractors.
The Congress leader alleged that the state government was making people addicted to liquor by opening more and more liquor and bar shops across the state.
He said, this government is giving pension and some money under Rythu Bandhu but is wasting its resources obtained through sales tax on liquor. See how liquor revenue has grown in these 7-8 years.
The revenue from the sale of liquor, which was Rs 10,833 crore, has increased to Rs 27,888 crore in 2020-21.
He alleged that the TRS government has completely neglected sectors like education, health and employment generation.
“The Chief Minister proudly says that the cost of a private villa in Hyderabad is Rs 25 crore and still people are coming and buying. Is this a growth indicator? This is an indicator of poor governance. In management we call it critical event analysis while analyzing performance. The chief minister made critical remarks, reflecting his innate mindset of how he views development.
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