Neither were any state taxes enhanced nor any new schemes announced in the budget which was about Rs 15,000 crore more than last year’s estimate of Rs 1.13 lakh crore. This is the fourth consecutive year that the state’s budget has been pegged at over Rs one lakh crore, despite the actual realizations falling way short of the projections.
For a state that is virtually in penury because of various factors, including political turmoil, a budget of this size has raised many an eyebrow with the opposition terming it as “unjustified.”
Of the total projected expenditure in the ensuing fiscal, more than Rs 20,000 crore will go towards clearing old arrears for various schemes even as the state’s public debt shot up to Rs 1.41 lakh crore from 1.23 lakh crore last year. This is 23.62 per cent of the
This was Ramanarayana Reddy’s maiden budget, which he presented at 11.43 am at the auspicious muhurtam set for the occasion, but amidst a din created by opposition members. Eleven MLAs belonging to TRS (6), CPI (4) and BJP (1) were suspended from the House for the day as they tried to disrupt the Finance Minister’s budget presentation, raising the demand for a resolution on creation of Telangana state.
The Telugu Desam Party members were on their feet at their respective seats shouting slogans lampooning the budget even as the minister went ahead with his address.
The Finance Minister projected the expected tax revenue during 2011-12 to be Rs 56,438 crore as against Rs 46,999 crore last year. Non-tax revenue is expected to be Rs 12,339 crore while Central funds are projected at Rs 32,218 crore, including the state share in Central taxes of Rs 16,826 crore.
The plan outlay for 2011-12 has been put at Rs 47,558 crore and non-plan outlay at Rs 80,984 crore.
“Our state economy is likely to grow by 8.89 per cent in the year 2010-11, notwithstanding the heavy rains and floods which have adversely impacted the farming and allied sectors. The
Industrial sector in the state was expected to achieve a growth rate of 7.79 per cent while the services sector was expected to record a growth rate of 9.61 per cent, he said.
“The good growth in GSDP is also expected to translate into buoyant revenue collections in the coming year at approximately 20 per cent higher than the current budget. Our government is committed to continue all welfare programmes while equal emphasis has been laid on development programmes by continuing substantial allocations to infrastructure sectors like irrigation, roads, water supply and power,” Ramanarayana said.
The Finance Minister announced that the government would introduce a Comprehensive Financial Management System (CFMS) for providing a seamless interface with all stakeholders and putting in place an efficient mechanism of electronic information sharing with external stakeholders in budgeting and accounting processes. A sum of Rs 100 crore has been earmarked in the 2011-12 budget to implement the CFMS.
Ramanarayana Reddy sought to keep his fellow legislators in good humour by announcing that the Constituency Development Programme taken up with Rs 385 crore this year would be continued. Besides, he also announced the launch of a special fund for development and welfare activities with an outlay of Rs 400 crore.