The Finance Minister of Telangana State, T Harish Rao, presented a Tax-free budget of INR 2,90,396 crore for the 2023-24 fiscal year in the State Legislative Assembly on Monday. The budget consists of a total revenue expenditure of INR 2,11,685 crore and a capital expenditure of INR 37,525 crore. This is approximately INR 34,000 crore higher than the previous year’s budget of INR 2.56 lakh crore for 2022-23.
The following were highlighted in the State Budget of Telangana presented by the Finance Minister.
The Telangana Government announced plans to launch a new Employees Health Scheme (EHS) in the upcoming fiscal year. An Employees’ Health Care Trust, consisting of representatives from the government, employees, teachers, and retired employees, will be established. The details of the Trust will be established soon.
The government is working to implement an effective system to ensure fair treatment of local people in government jobs, according to Mr. Rao. Previously, local residents only had 60-80% reservation for government jobs. The new recruitment system in place now ensures that 95% of the government jobs will be filled by locals. The Telangana Government has approved the filling of 1,61,572 positions through direct recruitment from June 2014 to February 2022. Of these, the selection process has been completed for 1,41,735 posts.
Additionally, in March 2022, Chief Minister KCR had announced that 80,039 positions in various categories will be filled. The recruitment process is ongoing, according to Finance Minister Harish Rao. The budget includes an additional allocation of INR 1,000 crore for the salaries of the new employees. Starting in April 2023, contract employees will be made permanent and the pay scales of SERP employees will be revised.
Finance Minister Harish Rao of Telangana stated that it is a source of pride that Telangana employees are the highest paid in the country. He also mentioned that they receive better salaries compared to those of the Central Government and other state governments.
Harish Rao emphasized that Telangana has always prioritized the welfare of its employees and teachers, even when faced with cuts in funding and restrictions imposed by the Central Government, and despite the large financial commitments for state welfare and development programs.
Finance Minister Harish Rao highlighted the state’s exceptional law and order as a significant factor contributing to its success in attracting investments. He informed that the Telangana Government has created 31,198 new police positions to date.
As part of the Mega City Policing initiative, plans are underway to reinforce the Hyderabad, Cyberabad, and Rachakonda Police Commissionerates. For effective surveillance, 9.8 lakh CCTV cameras have been installed, setting a national record, according to Mr. Rao.
With the aim of boosting the food processing industry, the Telangana Government has planned to establish 21 new food processing zones in 9 districts of the state, excluding Hyderabad. Covering a total area of 7,150 acres, these zones will provide a supportive environment for the growth of the food processing sector
The Telangana state government has been working diligently to improve its infrastructure and create a conducive business environment to attract investments. The state’s efforts have resulted in an increase in transparency, ease of getting permissions, and better law and order, which has led to a surge in national and international investments.
The FM of Telangana, Harish Rao, highlighted the significant reforms that have been made in the revenue department through the DHARANI portal, which has led to a decrease in land dispute cases and increased transparency in the registration system. Additionally, the state has witnessed a growth in its IT sector, with the establishment of offices for leading tech companies such as Apple, Google, Amazon, Microsoft, and Facebook.
The Telangana state government has also established IT towers in tier-2 cities and trained over 7 lakh students through the Telangana Academy for Skill and Knowledge. The state has received investment commitments worth ₹21,000 crore at the World Economic Forum in Davos and has set a target of establishing 70 new industrial parks through the TSIIC in the next five years.
With the aim of boosting the food processing industry, the Telangana Government has planned to establish 21 new food processing zones in 9 districts of the state, excluding Hyderabad. Covering a total area of 7,150 acres, these zones will provide a supportive environment for the growth of the food processing sector
In conclusion, the state’s efforts have led to the creation of over 22 lakh employment opportunities, with a growth rate of 26.14% in IT exports in 2021-22 and an increase in the annual IT exports from ₹57,258 crore to ₹1,83,569 crore, as per the records.
The Telangana State government has made significant advancements in the Roads and Buildings department in the past 8.5 years. The road length under the jurisdiction of the department has increased from 24,245 km in 2014 to 1,875 km of double-lane roads under construction, with 1,684 km already completed. The construction of 717 bridges has also been taken up at a cost of ₹3,134 crore, with 350 bridges already completed.
The government has also initiated the construction of integrated district office complexes in 29 districts, with 17 buildings already inaugurated and 11 in the final stages of construction. The new Secretariat building of Telangana, a seven-story structure with modern facilities and a built-up area of 7 lakh square feet, will be inaugurated on February 17, 2023, by the Telangana Chief Minister. The new building has been named after Dr. B.R. Ambedkar.
To pay tribute to the great leader, the government is also constructing a 125-foot statue of Dr. B.R. Ambedkar near the new Secretariat building, at a cost of ₹147 crore. This statue of Babasaheb will serve as a symbol of pride for the entire nation and is expected to be completed by March 2023. The Martyrs Memorial, constructed by the Telangana government at a cost of ₹178 crore, is also ready for inauguration.
The Palle Pragathi scheme has brought basic amenities, sanitation, and greenery to all villages in Telangana. No other state in India has come close to the progress made in the 12,769 villages. The five phases of the Palle Pragathi program have been completed, with over ₹10,000 crore transferred to Gram Panchayats since its launch. The budget proposed ₹2,000 crore for the repair and maintenance of old Panchayat Raj roads, and a total of ₹31,426 crore for the Panchayat Raj Department.
The Telangana government is working to enhance infrastructure and traffic flow in Hyderabad. Out of the 22 planned Foot Over Bridges (FOBs) with a cost of ₹76.65 crore, 9 have been completed and the rest are nearing completion. To address traffic congestion, the government has undertaken several SRDP projects such as flyovers, underpasses, and Road Over Bridges (ROBs), with 31 already finished and the rest set to be completed this year.
To meet the growing demand for air travel, the government is expanding RGI airport facilities at a cost of ₹7,500 crore to accommodate up to 4 crore passengers per year, expected to be finished by June. The state will also finance the ₹6,250 crore Metro Rail connection project, set to be completed within the next three years.
The government is promoting sustainability by building a 23 km solar roof cycle track in Kokapet as a pilot project, estimated to cost ₹95 crore. 67,782 double bedroom houses have already been completed in the GHMC area, and construction of 32,218 more is underway.
To support the food processing industry, 21 new special food processing zones have been proposed in 9 districts of Telangana, excluding Hyderabad, to be established in an area of 7,150 acres.
The state budget places emphasis on healthcare and medical education, boasting a leading position in the country in medical education with 19 MBBS seats per 1 lakh population and second in medical PG seats with 7 seats per 1 lakh population. The number of oxygen beds in the state has skyrocketed 20 times to 27,966 since 2014.
To bring top-notch healthcare to the masses, the government is building facilities in Hyderabad, Gachibowli, L.B. Nagar, Alwal, and Sanathnagar with three hospitals already under construction at a cost of ₹2,679 crore. These hospitals will add an additional 4,200 beds and are expected to be finished by next fiscal year. The government also intends to add 2,000 more beds in the NIMS Health City in Warangal.
The number of medical colleges in Telangana is being increased to 26, one in each district, along with nursing colleges attached to each medical college. The state is expanding dialysis facilities to 104 centers, a significant increase from just three previously. The FM and health minister noted that government hospital deliveries have more than doubled from 30.5% in 2015-16 to 61% with the introduction of the KCR Kit and the strengthening of maternal and child health hospitals.
The KCR Nutrition Kit Scheme was launched to combat malnutrition in pregnant women and will be extended to all 33 districts this year, benefiting nearly 4 lakh women annually. The budget allocated ₹200 crore for this initiative, as reported by Harish Rao.
FM Harish Rao, speaking on Education, announced a historic exclusive allocation of ₹500 crore for basic amenities in universities, including modernizing hostels and building new facilities. This is the largest allocation for university amenities in the history of the state, according to FM Rao.
The Telangana state government’s initiative “Telanganaku Haritha Haram” to increase the green cover has been successful. According to the India Forest Report 2021 by the Forest Survey of India, the green cover in Telangana has increased by 7.70%, which is equivalent to 5.13 lakh acres.
To rejuvenate the forest land, the government has invested ₹1,500 crore for afforestation and has established 11,000 kms of fences for protection. These efforts have led to a noticeable rise in wildlife, with the number of tigers increasing to 26 and the number of leopards rising to 341. In addition, several previously endangered bird species have regained their habitats.
Telangana Government had decided to establish District Courts in accordance with the number of districts. Following this decision, in 23 newly created districts, District Courts and Legal Services have already been established. 1,721 new posts have been sanctioned for functioning of these courts.
Telangana Government has taken a decision to establish 60 Junior, Senior and District Judge Courts in 2023-24.
Telangana Government treats all religions equally. Without discrimination to any section of the society, the benefits of government programmes are made available to all. Before State formation, previous governments were not even spending ₹300 crore per annum for the welfare of minorities. Since Telangana formation in June 2014 to January 2023, ₹8,581 crore has been spent by the government for the welfare of minorities.
For disbursement of loans by Minorities Welfare Corporation in the current and the ensuing fiscal, ₹270 crore is proposed to be spent. This is an increase of ₹239 crore from previous year’s Budget.
Proposal of ₹17,700 crore for Dalit Bandhu scheme and an amount of ₹12,000 crore towards Aasara Pensions.
Telangana FM Harish Rao said public administration is not a commercial activity which looks at everything from the point of view of loss and gain. Instead of viewing welfare programmes from the point of view of loss or gain, they should be looked at from a humanitarian angle. He said this pointing to how a few political parties are ridiculing welfare programmes by calling them as ‘revadi’. Welfare programmes are being ridiculed as freebies. He recalled what CM apparently said in his interaction with the Finance Commission in 2019 “Hum Sarkar Chala Rahe Hai..Vyapaar Nahi”.
The Telangana Government completed its ambitious piped drinking water project Mission ‘Bhagiratha’ not only in the shortest time but with utmost economy in expenditure. As against the administrative sanction of ₹44,933.66 crore actual expenditure incurred on the Mission at the closure of the project is only ₹36,900 crore, thus saving ₹8,033.66 crore: FM Rao
The Telangana government has made substantial progress in improving irrigation in the state. With irrigation facilities already available to 73,33,000 acres, the state plans to bring an additional 50,24,000 acres under irrigation in the next 2-3 years, with a goal to provide irrigation to over 1 crore acres. This vision was presented by FM Harish Rao in the 2023-24 Budget speech.
The government has efficiently completed several pending irrigation projects, including Kalvakurthy, Bhima, Nettempadu, Koil Sagar, Yellampalli, Mid Manair, and Devadula, creating a new ayacut for 20 lakh acres. This has transformed the once drought-prone Palamuru district into a green region, reducing migration.
The government is also constructing 1,200 check dams with an expenditure of ₹3,825 crore. In the first phase, 650 check dams have already been completed and the construction of the remaining check dams is in progress, according to the FM.
The increase in air moisture due to irrigation projects, tank renovations, and check dam constructions has made Telangana suitable for oil palm cultivation. Farmers can expect a net income of Rs. 1.5 lakh per acre per year, leading the state government to aim for oil palm cultivation on 20 lakh acres and provide large incentives to encourage farmers. The government is also allocating separate budgets for subsidizing oil palm plants, fertilizers, and drip irrigation, with a proposed budget of Rs. 1,000 crore for oil palm cultivation.
The Rythu Bandhu investment support scheme has garnered worldwide appreciation and brought hope to farmers who were previously burdened by debt. According to Mr. Rao, Telangana is the only state to provide investment support of Rs. 65,000 crore to 65 lakh farmers. Despite challenges such as cuts in resource transfers, non-fixing of electric meters to pump sets, FRBM limit reductions, and the pandemic, the Telangana government promptly provided investment support of Rs. 10,000 per acre to farmers. Through the Rythu Bima insurance scheme, assistance of Rs. 5,384 crore has been provided to around 1 lakh farmer families.
According to Mr. Rao, the state of Telangana has achieved an average growth rate of 7.4% in gross value added by agriculture and related sectors at constant prices from 2015-16 to 2021-22, surpassing the national average of 4%. This growth is attributed to a range of schemes implemented by the state, including Rythu Bandhu, Rythu Bhima, 24-hour free electricity, and farm loan waivers, among others.
In the current year, based on State’s economic performance & borrowing limits, ₹53,970 crore was included in the Budget as borrowings. But Centre unilaterally imposed a cut of ₹15,033 crore and reduced Telangana’s borrowing limits to ₹38,937 crore — totally unjustified and uncalled for, he said.
These kinds of cuts are against the spirit of federalism and have eroded the rights of the States, FM Harish Rao said, accusing the NDA Government at the Centre of also breaking the tradition of implementing the recommendations of the Finance Commission.
For 2021-26, the 15th Finance Commission recommended grants amounting to ₹5,374 crore to Telangana. But by denying these grants, grave injustice has been done to Telangana. No government has ignored the recommendations of the Finance Commission in such a blatant manner, Telangana FM lashed out at the Centre.
The Central Government has not released even one paise towards Mission Bhagiratha and Mission Kakatiya despite the NITI Aayog has recommended a grant of ₹19,205 crore and ₹5,000 crore respectively for the major projects initiated by the Telangana Government, Mr. Rao said.
Finance Minister of Telangana, Harish Rao, declared an allocation of ₹12,161 crore for the Medical and Health Department in the Budget. The Dalit Bandhu scheme will receive ₹17,700 crore and a Special Development Fund of ₹36,750 crore is proposed for Scheduled Castes in the Budget, according to the minister.
Finance Minister Harish Rao said Telangana’s GSDP annually grew at 12.60% between
Seeking to prove how Telangana is doing better on various growth indices, FM Harish Rao in 2023-24 Budget speech says per capita income of State is estimated to have increased from ₹1,12,162 in 2013-14 to ₹3,17,115 in 2022-23, which is 86% more than higher than national per capita income of ₹1,70,620.
You can access the full budget document here.
The discussion on the Budget is set to begin on February 8 in the legislative assembly session which concludes on February 12.
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