Telangana records 15.3% increase in revenue, says govt

The cabinet had a thorough discussion on the state financial position, an official release from the chief minister’s office said.

Hyderabad

Chief minister K Chandrasekhar Rao pointed out that the state’s income during 2014-15, the first year of Telangana formation, was ₹62,000 crore. It had grown to ₹1.84 lakh crore by 2021-222. (PTI)

Telangana has recorded 15.3% growth in its revenue during the current financial year though there was a decline of 12.9% in the devolutions from the Centre under Centrally Sponsored Schemes (CSS) and other schemes.

This was disclosed by the state finance department officials during the state cabinet meeting chaired by chief minister K Chandrasekhar Rao at Pragathi Bhavan on Thursday. The cabinet had a thorough discussion on the state financial position, an official release from the chief minister’s office said.

The cabinet felt that there has been inordinate delay in the devolution of from the Centre because of the introduction of a new procedure called Single Nodal Agency dashboard in the Public Finance Management System (PFMS),

“Besides, the Centre has not been giving permissions of borrowings under Fiscal Responsibility and Budget Management (FRBM) Act, besides imposing cuts in the borrowings as per the FRBM norms. Had there not been these restrictions, the state would have achieved 22 per cent growth rate,” the chief minister observed.

In the last financial year, the state government had spent ₹1.84 lakh crore on various budgetary allocations, of which only ₹5,200 crore was released from the Centre under Centrally Sponsored Schemes, accounting for only 3% of the state expenditure, KCR said.

The cabinet felt that the policies being adopted by the Centre resulted in the fall in the growth rate of the states. “Had the Centre achieved the same progress of Telangana, the Gross State Domestic Product (GSDP) of Telangana would have grown by another ₹3 lakh crore,” the cabinet said.

The chief minister pointed out that the state’s income during 2014-15, the first year of Telangana formation, was ₹62,000 crore. It had grown to ₹1.84 lakh crore by 2021-222. So, in seven years, there was a three-fold growth in the state’s revenues. The state had achieved a growth rate of 11.5% in the state’s own taxes, which was the highest in the country, the cabinet said.

The cabinet ratified the state government’s decision to increase the number of pensions from existing 3.6 million to 4.6 million by granting as many 1 million as new pensions.

Among other decisions of the cabinet are: Release of 75 prisoners undergoing life-term on the occasion of 75 years of Indian Independence; filling up of 5,111 posts of anganwadi teachers and maids and expediting distribution of house sites to the poor.