Surplus Budget tag hurts Telangana very badly!

According to the 14th Finance Commission Report, Telangana is only one of the four states in the country which have a surplus budget. This is an achievement to cherish but that very achievement hurt the state very badly in the allocations. The finance Commission did not take in to account several flagship welfare schemes of the government in arriving at the conclusion.

Since there is a surplus budget, the allocations at the Center were very meager. On the other side government’s plan to mobilise funds by sale of lands did not materialize. Among all these problems, the state government officials are in confusion regarding the budget preparation. The government had estimated total receipts of Rs. 98,099 crore to fund its expenditure in the year but its own tax receipts were projected to be Rs. 35,378 crore and non-tax revenue Rs. 13,242 crore. It had pinned high hopes on Central assistance to fund their expenses but of no use now.

Telangana’s outstanding balance is around Rs. 67,000 crore and is entitled to another Rs. 68,000 crore loan going by the 3 per cent cap prescribed by FRBM. So there is a deficit of Rs. 17,398 crore or 4.79 per cent in the budget which has to be mobilized out of no where.