Telangana government presents tax-free budget for FY 2020-21

Telangana State Finance Minister T Harish Rao on Sunday presented a Rs 1.82 lakh crore budget for the financial year 2020-21, signalling a strong resolve to overcome the economic slowdown.

Capital expenditure has been pegged at Rs 22,061.18 crore while revenue expenditure will be Rs 1,38, 669.82 crore. The highlight of the budget is the government decision to implement the farm loan waiver scheme beginning this month. The government has allocated Rs 6,225 crore for this purpose that will benefit over five lakh farmers in the State who have loans of less than Rs 25,000.

Chief Minister K Chandrasekhar Rao, describing the Budget as realistic, said it strikes a balance between income, expenditure and needs of the people. He expressed satisfaction over the adequate allocations made in the Budget for the plans drawn for welfare of all sections and for all the sectors.

He said despite the fact that the country is going through an economic slow  own, decrease in the state revenues, reduction in the



funds from the Centre, the Budget was prepared without hampering any development activity in the State.

Despite a slash in the flow of central funds and an adverse impact of economic slowdown, the government has struck a fine balance between welfare and development priorities. “We have adopted pragmatic approach in preparing the budget,” Harish Rao said while presenting his maiden budget in the Legislative Assembly.

There will be a revenue surplus of Rs 4,482.18 crore while the fiscal deficit is pegged at Rs 33,191.25 crore.

The Finance Minister revealed that the state’s share from the divisible pool of central taxes has gone down by Rs 3,731 crore during the financial year 2019-20.

The state’s revenue growth rate has fallen to 6.3 percent due to erratic and inadequate release of funds from the Central government.

The budget has earmarked Rs 14,000 crore for the Rythu Bandhu scheme.