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This is an archive article published on February 6, 2023

Telangana Budget 2023: Presenting Rs 2.90 lakh crore outlay, Finance Minister Harish Rao calls out ‘hurdles created by Centre’

Finance Minister Harish Rao proposed a revenue expenditure of Rs 2,11,685 crore and a capital expenditure of Rs 37,525 crore in the tax-free budget in which public welfare schemes got a lion's share of allocation.

Telangana Finance Minister T Harish Rao with CM K Chandrasekhar Rao. (Express Photo)Telangana Finance Minister T Harish Rao with CM K Chandrasekhar Rao. (Express Photo)
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Telangana Budget 2023: Presenting Rs 2.90 lakh crore outlay, Finance Minister Harish Rao calls out ‘hurdles created by Centre’
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Telangana Finance Minister T Harish Rao Monday presented the state budget for the 2023-24 financial year, proposing a total outlay of Rs 2,90,396 crore, which is Rs 34,000 crore more than the 2.56 lakh crore outlay proposed in the previous budget.

He proposed a revenue expenditure of Rs 2,11,685 crore and a capital expenditure of Rs 37,525 crore.

Telangana Finance Minister T Harish Rao presents the budget for financial year 2023-2024. (Express Photo)

As expected, public welfare schemes got the lion’s share of the allocation in the tax-free budget with Rs 17,700 crore set aside for the implementation of Dalita Bandhu, a unique scheme extending Rs 10 lakh as financial assistance to each Dalit family without any collateral.

The budget also allocated Rs 7,890 crore for the construction of double bed-room houses for the poor and Rs 15,075 crore for Rythu Bandhu.

In a two-hour speech, Rao listed how Telangana has set itself as a role model for the country and ushered in a golden era in the last eight-and-a-half years. The finance minister said the state has not compromised on its development and welfare schemes despite restrictions and discrimination by the Centre.

“Both in welfare and development, Telangana is a role model for the entire country. We can rightfully claim that whatever is being implemented in Telangana is being followed by the entire country. ‘Telangana Model’, which combines humanitarian approach, constructive thinking, futuristic planning and transparent administration, is getting accolades, both nationally and internationally,” he said.

The state cabinet Sunday approved the annual financial statement for the upcoming year. With the Assembly elections in Telangana scheduled later in the year, this was also the Bharat Rashtra Samithi (BRS) government’s last budget in its ongoing tenure.

Speaking about the “hurdles created by the Centre” to the development of Telangana, Rao recalled how the Centre unilaterally imposed a reduction of Rs 15,033 crore in the total borrowings of Rs 53,970 crore that was approved in the 2022-23 state budget.

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“This decision of the Centre was totally unjustified and uncalled for. These kinds of cuts are against the spirit of federalism and have eroded the rights of the states,” he said.

Rao also lamented that the Centre was yet to release to Telangana a grant of Rs 19,205 crore for Mission Bhagiratha and Rs 5,000 crore for Mission Kakatiya, recommended by NITI Aayog.

In a two-hour speech, Rao listed how Telangana has set itself as a role model for the country and ushered in a golden era in the last eight-and-a-half years. (Express Photo)

The finance minister underlined how certain political parties ridiculed welfare programmes as ‘revdi’ or freebies and said such programmes should be looked at from a humanitarian angle and not from the point of view of loss or gain.

Budgetary allocations

Rao proposed an allocation of Rs 36,750 crore towards the Special Development Fund for Scheduled Castes. The government also proposed Rs 15,233 crore towards Special Development Fund for Scheduled Tribes.

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The government also proposed Rs 2,200 crore for the welfare of minorities and Rs 6,229 crore for the welfare of backward communities. Towards the government’s flagship schemes Kalyana Lakshmi and Shadi Mubarak, it proposed to spend Rs 3,210 crore. An amount of Rs 12,000 crore is proposed towards payment of pensions.

For farmers’ debt waiver, Rs 6,385.20 crore has been set aside, while Rs 1,589.44 has been allocated for insurance to farmers. From the Rs 7,890 crores set aside for the construction of double bedroom houses, 2,000 poor beneficiaries in each of the 119 constituencies in the state would receive houses.

The finance minister underlined how certain political parties ridiculed welfare programmes as ‘revdi’ or freebies and said such programmes should be looked at from a humanitarian angle and not from the point of view of loss or gain. (Express Photo)

Rao also said the state is determined to go ahead with the construction of irrigation projects despite hurdles and a lack of assistance from the Centre. He proposed an outlay of Rs 31,426 crore for the Panchayati Raj department; Rs 26,885 crore for the irrigation sector; Rs 26,831 crore for the agriculture and cooperation department; and Rs 19,093 crore for the education sector, which includes Rs 3,001 crore for the higher education department.

Further, a sum of Rs 12,727 crore is proposed to be spent on the power sector. For the medical and health sector, Rao proposed Rs 12,161 crore. Rs 11,372 crore is proposed for the department of Municipal Administration and Urban Development, whereas a sum of Rs 9,599 crore is proposed for the Home department. Rs 2,131 crore is proposed to be allocated to the Women and Child Development department.

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Rao proposed an allocation of Rs 3,117 crore to the Civil Supplies department. He also proposed Rs 2,500 crore for the repair and maintenance of roads by the Roads and Buildings department and another Rs 1,471 crore to the Forest department.

The state proposed to spend Rs 1,000 crore towards promoting oil palm cultivation and, for the first time, to spend Rs 500 crore towards providing basic amenities such as the modernisation of hostels and construction of new university buildings across the state.

The government allocated Rs 1,500 crore to Hyderabad Metro Rail, besides Rs 500 crore towards connectivity to the old city and another Rs 500 crore for the proposed Airport Metro.

Rao said promises made under the Andhra Pradesh Reorganisation Act, 2014, still needed to be fulfilled. He said to complete five irrigation projects within the shortest time, the Telangana government resorted to off-budget borrowings well within the limits of the Fiscal Responsibility and Budget Management Act.

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Concluding his budget speech, Rao said Telangana would forge ahead and play an important role in nation-building in the years to come. “Let us continue to work together without any rest for the upliftment of Dalits, tribals, minorities, backward and weaker sections and poor people among the upper castes,” he added.

Discussions on the budget will begin on February 8 in the session that will conclude on February 12.

The budget size was Rs 2.56 lakh crore in 2022-23, Rs 2.30 lakh crore in 2021-22 and Rs 1.82 lakh crore in 2020-21.

Rahul V Pisharody is Assistant Editor with the Indian Express Online and has been reporting for IE on various news developments from Telangana since 2019. He is currently reporting on legal matters from the Telangana High Court. Rahul started his career as a journalist in 2011 with The New Indian Express and worked in different roles at the Hyderabad bureau for over 8 years. As Deputy Metro Editor, he was in charge of the Hyderabad bureau of the newspaper and coordinated with the team of city reporters, district correspondents, other centres and internet desk for over three years. A native of Palakkad in Kerala, Rahul has a Master's degree in Communication (Print and New Media) from the University of Hyderabad and a Bachelor's degree in Business Management from PSG College of Arts and Science, Coimbatore. ... Read More

Sreenivas Janyala is a Deputy Associate Editor at The Indian Express, where he serves as one of the most authoritative voices on the socio-political and economic landscape of Telangana and Andhra Pradesh. With a career spanning over two decades in mainstream journalism, he provides deep-dive analysis and frontline reporting on the intricate dynamics of South Indian governance. Expertise and Experience Regional Specialization: Based in Hyderabad, Sreenivas has spent more than 20 years documenting the evolution of the Telugu-speaking states. His reporting was foundational during the historic Telangana statehood movement and continues to track the post-bifurcation development of both Telangana and Andhra Pradesh. Key Coverage Beats: His extensive portfolio covers a vast spectrum of critical issues: High-Stakes Politics: Comprehensive tracking of regional powerhouses (BRS, TDP, YSRCP, and Congress), electoral shifts, and the political careers of figures like K. Chandrashekar Rao, Chandrababu Naidu, and Jagan Mohan Reddy. Internal Security & Conflict: Authoritative reporting on Left-Wing Extremism (LWE), the decline of the Maoist movement in former hotbeds, and intelligence-led investigations into regional security modules. Governance & Infrastructure: Detailed analysis of massive irrigation projects (like Kaleshwaram and Polavaram), capital city developments (Amaravati), and the implementation of state welfare schemes. Crisis & Health Reporting: Led the publication's ground-level coverage of the Covid-19 pandemic in South India and major industrial incidents, such as the Vizag gas leak. Analytical Depth: Beyond daily news, Sreenivas is known for his "Explained" pieces that demystify complex regional disputes, such as river water sharing and judicial allocations between the sister states. ... Read More

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