Telangana Budget Speech

8/10/2019 Telangana Budget Speech

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1

SPEECH OF SRI. EATALA RAJENDER,

HONOURABLE FINANCE MINISTER WHILE

PRESENTING THE BUDGET FOR THE YEAR 2014-15 TO THE TELANGANA STATE LEGISLATUREON NOVEMBER 5, 2014

Honble Speaker Sir,

This is a profound moment and I rise to present thefirst Budget of the new State of Telangana. This is also ahistoric occasion for four crore people of the State, as they

take control of their own resources and fate. I convey myheartfelt thanks to the people of Telangana, Honble ChiefMinister and Honble Members of the House on thisoccasion.

2. Our State is the result of prolonged struggle by twogenerations of people over six decades during whichmany lost whatever little they had and some even theirlives. We salute them all and also place on record the

critical contribution made by our respected Chief MinisterSri K Chandrasekhar Rao garu, who successfully led all

sections of people in carving out separate Telangana state.

3. This context commands me to ensure judicious useof revenues for fulfilling the hopes and aspirations of notonly the present but also future generations. The Budgethas been formulated keeping in view the imperative ofensuring a bright future for people of Telangana.

4.

As the Honble Members are aware opportunitieswere lost and problems accumulated as a result ofdeliberate neglect of Telangana. The immense task before


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the government is not only to correct historic wrongs butalso to quickly impart social and economic justice for vast

majority of the people.5. Telangana has suffered on all fronts. With therealisation of separate Statehood, people have startedrealising the fruits of self rule.

6. Though we have direct control over the affairs of theState, a number of indirect forces are still bent on creatinghurdles in our efforts to develop the State.

7.

The Government is committed and determined andwith the active support of people, all the hurdles in thepath of development will be overcome. I am confidentthat the spirit and dedication with which separateStatehood has been achieved will continue to drive theState towards realising the goal of Bangaru Telangana.

8.

For reconstructing the State, we need to reinvent

and reorient Telangana. As the Honble Members will

appreciate, there are no easy solutions or short cuts.Serious and concerted action is needed to address the pastneglect.

9. Though this Budget is only for the available 10months of the current financial year 2014-15, it has beenso programmed to integrate seamlessly into the five yearperspective plan 2014-2019.

10. We dare not forget today that our State owes its

existence to a large part to the martyrs, the Amaraveerulu,who made the supreme sacrifice by laying down theirlives for the cause of the State. The greatest homage that


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aspirations of people and to optimize the limitedresources conducted a Comprehensive Household Survey

on August 19, 2014. In an unprecedented manner, thesurvey was completed on a single day with theoverwhelming participation of people. The results of thesurvey will be used to better target welfare programmes.

Socio-Economic Situation

13. Before presenting the new initiatives and budgetaryallocations, let me briefly present the socio-economicsituation of Telangana State. Nearly, 85 percent of States

population consists of weaker sections. Thispredominance casts a heavy responsibility on the Stategovernment in terms of bringing them on par with othersections. Their continued backwardness inspite of sixdecades of planning points to lopsided policies and lack ofcommitment. The growth of the State economy witnesseda sharp fall from an average of 10.5 percent during theperiod 2005-10 to 4.5 percent in 2012-13 owing to markeddeceleration in the growth of industrial sector. Reversal of

this trend requires massive infusion of investment fundsinto agriculture, industry and infrastructure sectors. Thisis essential from the point of view of food security,employment and revenue buoyancy.

14. The major contributors to the Gross State DomesticProduct (GSDP) are the services and the industry sectorscontributing about 58 and 28 percent, respectively. Thelack of momentum in the growth of industry sector is a

matter of grave concern for the new State. The agriculturesector though contributes only 14 percent to the GSDP


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supports nearly 50 percent of the States population eitherdirectly or indirectly.

15.

The per capita income of the State at Rs. 93,151 in2013-14, though higher than the national average of Rs.74,920, masks wide variations across districts. InTelangana, only three out of ten districts have per capitaincome higher than the national average. In the remainingseven districts, the percapita income is below the nationalaverage. As observed by numerous committees appointedby the Government of India, majority of the districts inTelangana continue to remain backward with nine out often districts in the State covered under the BackwardRegions Grant Fund (BRGF). Despite all the constraints,the State is determined to initiate all necessary steps toregain the growth momentum and to ensure that thebenefits of development are broad based. TheGovernment is of the firm belief that mere growth has nomeaning and even legitimacy if the deprived sections ofthe society are left behind. This Budget is a reflection of

our commitment.Redeeming the Election Promises

16.

Our Party has made certain promises in the election

manifesto after a lot of thinking and taking into accountthe felt and just needs of people. For our Government, apromise is a promise and meant to be honoured, nomatter what the constraints are. Several initiatives in thedirection of fulfilling the promises have been taken soon

after the formation of our Government and several otherinitiatives are proposed in this Budget. I will now presentbefore the House the new initiatives and flagship


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programs of the State Government to further the cause ofBangaru Telangana.

Revival of Tanks and Irrigation

17. As the Honble Members are aware, tanks arecrucial to the sustenance of village economy. Followingthe total neglect of tanks, which used to irrigate nearly 60percent of the net sown area in the State till the earlysixties, dependence of agriculture on well irrigation hasincreased considerably to the detriment of farmersinterests. There was no maintenance of tanks in the

combined State and many tanks have been encroachedupon as a result of which area irrigated by tanks is nowless than 9 percent. As a consequence, farmers wereforced to borrow and invest huge amounts of money indigging wells and installing pump sets. It is disturbing andalarming to note that over 80 percent of the net sown areain the state now depends on well irrigation created by thepoor farmers of the state by investing thousands of croresof their hard earned money. With the frequent occurrence

of droughts and depleting ground water levels, many ofthe wells have gone dry adding to the misery of farmers.There are instances of farmers investing in one well afteranother, to no end. Compounding the problems of thefarmers is the acute power shortage. Agriculture in theState is a risky gamble owing to the neglect of the sectorby the successive governments. To put an end to theplight of the farmers, the Government have decided totake up the restoration of over 45,000 tanks over the nextfive years. Nearly 9,000 tanks are proposed to be takenup for restoration in this financial year to start with. An


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amount of Rs. 2,000 crore is proposed in the BudgetEstimate (BE) for 2014-15 for this purpose.

18.

Simultaneously, the Government are also planningto complete the prioritised major and medium projectsduring the course of next five years. As a first step, all thefour ongoing Lift irrigation Schemes of Nettempadu,Kalwakurti, Bhima and Koilsagar in Mahabubnagar areprogrammed to be completed during the current year itselfbringing 2,97,550 acres of land under irrigation. A totalprovision of Rs 6,500 crore is proposed for irrigation andcommand area development sector.

Water Grid and Drinking Water

19. Acute shortage of drinking water at times andprevalence of water quality related ailments such as

flourosis are common phenomenon in the State. Thepresent supply of drinking water is neither reliable noradequate. For lack of protected drinking water, poorGonds in Adilabad are succumbing to water borne

diseases. People in Nalgonda continue to suffer fromfluoride contaminated water despite the Krishna riverflowing through it. Moved by the plight of the flourosisaffected people of Nalgonda, the Honble Chief Minister

is determined to provide a lasting solution to thisproblem. Drinking water is a basic necessity and thisGovernment opines that people cannot be made to waitindefinitely for its adequate provision. Towards this end,Government have decided to earmark 10 percent of water

in irrigation projects for the use of drinking water and toestablish a State Drinking Water Grid to provideprotected and piped drinking water to every household in


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the State through a network of pipelines at an estimatedcost of Rs.25,000 crore. As a primer, a provision of

Rs.2,000 crore is proposed in the BE 2014-15.Agriculture and Allied Sectors

20. Agriculture in Telangana is largely dependent onerratic rainfall and depleting ground water, thus making itvulnerable to frequent droughts and other unfavourableweather conditions. Low productivity, rising input costsand stagnant public investment have made agricultureunremunerative and very risky to farmers. Large sections

of the farm households have been facing great deal ofdistress as a consequence of a decline in agriculturalincome, erosion of their repayment capacity andincreased debt burden since the mid-nineties. Frequentcrop failures because of uncertain weather and pestattacks have driven a large number of farmers to suicide,the incidence of which was one of the highest in the entirecountry. Unless the farmers are helped to come out of thedebt trap, their plight will worsen further and there will be

no private investment in agriculture. Consequently, thegoal of higher growth in agriculture will remain elusiveforever. Majority of farm families are small and marginal.The scope for private investment in agriculture is verylimited because of uncertain returns and high incidence offarmer indebtedness in the State. Infusion of investment isthe surest way to enhance agricultural productivity, whichbesides breaking the vicious cycle of rural poverty couldalso address the macroeconomic problem of persistenthigh food inflation. Taking into account the plight of thefarmers, the State Government put in place a Farmer


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Debt Waiver Scheme under which the outstanding croploans up to Rs. one lakh per family are being waived. An

amount of Rs. 4,250 crore has already been credited to theloan accounts as first instalment. Despite the constraintsin getting the outstanding loans rescheduled by banks, theState Government has gone ahead with the farmer debtwaiver scheme and more than proved its commitment tothe welfare of farmers. I may add that this is the first of itskind initiative taken by any State Government in thecountry to comprehensively address the problem offarmersindebtedness.

21.

A specific instance of inbuilt bias against Telanganafarming can be seen in the release of input subsidy.Subsidy due to farmers especially relating to calamitiessuch as hail storms remained unpaid from 2009-10onwards. To provide relief to farmers, the Governmenthave released an amount of Rs. 480.43 crore towardsinput subsidy dues from the year 2009-10 onwards.

22. The Government have released an amount of

Rs.11.50 crore to Red Jowar seed grower farmers inNizamabad district to set-off their long pending dues.

23. Another major problem facing the agriculture sectoris market risk characterised by wide fluctuations inagriculture produce prices. There are instances of farmersabandoning crops because of steep fall in prices for theirproduce. Unless there is an assurance of remunerativeprices, farmers cannot take a rational decision either with

regard to the cropping pattern or the investments on cropinputs. The Government have decided to bring an end tothis uncertainty by establishing a Market Intervention


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Fund with a provision of Rs. 400 crore in this Budget.With timely and selective market intervention, an era of

stable and remunerative prices will set in.Making Telangana a Seed Bowl of the Country

24. A lasting solution to the low and uncertain incomesof farmers lies in encouraging the cultivation of high valuecrops and increasing the productivity in general.Fortunately, Telangana is endowed with variety of fertilesoils suitable for growing seeds. With proper planning,Telangana has the potential to emerge as the seed bowl of

India. To unlock this potential, the State Government hastaken the initiative of developing seed chains and anamount of Rs.50 crore has been proposed in the Budget.Plans are afoot to tie up with seed companies for thepurpose of marketing. The above measures would help ineliminating market risk to a large extent. I may mentionwith all humility that no such attempt has ever beenmade. As agriculture provides direct or indirectsustenance to nearly 50 percent of the States population,

the Government is committed to the revival of theagriculture sector. For this purpose, a multi-prongedapproach is being adopted, Apart from farm loan waiver,development of seed chains, a number of other initiativesare being taken up. These include development of cropcolonies, strengthening soil testing, promotion of farmmechanization and establishment of farm field schools.While an amount of Rs.100 crore is proposed for farmmechanization, the amounts proposed for crop coloniesincluding soil testing and farm field schools are Rs. 20crore and Rs.10 crore, respectively.


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Kamatala Ekikarana

25. Agricultural holdings in the State are small in size

with land located at different places. Consolidation ofland is necessary to make agriculture productive and

intensive. Therefore, the Government have decided totake up consolidation of agricultural holdings.

Horticulture Development

26.

Horticulture has an immense potential in the State.It is proposed to promote green house farming in 1,000

acres in the areas surrounding Hyderabad on a pilot basisin the current year for the cultivation of exotic andunseasonal vegetables at an estimated cost of Rs.200

crore. Provision has been proposed for this amount in theBudget. Under this programme, it is proposed to extend75 percent subsidy on the cost of establishing greenhouses to farmers.

27. Apart from the promotion of green houses, the State

Government has taken a decision to promote dripirrigation to optimize the use of ground water in 1.36 lakhacres with a subsidy of 100 percent to SC and ST farmers,90 percent to small and marginal farmers and 80 percentto other farmers. An amount of Rs. 250 crore has beenproposed in the BE 2014-15.

Poultry Sector

28. Poultry farming is an important sector in Telangana.

As a poultry farmer, I am aware of the acute distress inthe sector because of increase in the feed prices andfluctuating prices for poultry products. I will be failing in


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my duty if I leave out the sector. Therefore, an amount ofRs. 20 crore has been proposed towards power subsidy to

poultry farmers. The modalities of dispensing the subsidyare being worked out. So far, 1.5 lakh tonnes of maizecosting Rs.14 per kg has been supplied to poultry farmersat a subsidised price of Rs. 10 per kg.

Dairy Sector

29. Milk production in the State is inadequate to meetthe rising demand. With a view to encouraging thefarmers to take up milk production in a sustainable way,

an amount of Rs. 16.30 crore has been provided in theBudget as incentive to milk producers at the rate of Rs. 4per litre of milk supplied to Vijaya Dairy.

Fisheries Development

30. Taking into account the need to develop fisheriessector in the State, two of my Cabinet colleagues havevisited West Bengal and Jharkhand to get first hand

information about the best practices being followed there.It is proposed to modernise and develop the sector. Therevival of tanks proposed by the Government will give aboost to the development of fisheries in Telangana.Government will consider making suitable provision forthe development of fisheries sector.

Welfare Programmes

Welfare of Scheduled Castes

31. The economic and social status of scheduled castes,who constitute 15.4 percent of the states population,


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continues to remain pathetic because of lack of a focusedapproach to address their plight. No meaningful initiative

has been taken by any Government so far to provide alasting solution to their plight. The Government isconvinced that there cannot be a better policy to addresstheir poverty on a lasting basis than by providing themwith a permanent source of livelihood. Accordingly,Government have taken a path breaking policy decisionto provide three acres of cultivable land to each landlessSC family, develop the same with irrigation and providethe total cost of cultivation for the first year as a grant. As

you all know, the scheme was launched on August 15,2014 on a pilot basis. In the next phase, SC householdsholding less than three acres of land will be provided the

balance extent of land. An amount of Rs. 1,000 crore hasbeen proposed for this scheme. The Government iscommitted to provide an amount of Rs.50,000 for thewelfare of SCs over the five-year period 2014-19. Inkeeping with the commitment of the Government, theSocial Welfare Department has been renamed as SC

Development Department.

Tribal Welfare

32.

Tribal population continues to remaindisadvantaged in the State. Corresponding to rise in theproportion of ST population in Telangana State,theproportion of TSP has been raised to 9.34% amountingto Rs. 4461.21 crore.Plans are afoot to convert GirijanTandas into gram panchayats and to formulate schemesimilar to those in the ITDAs for tribals living in plains.To perpetuate the memory of Gond martyr Komaram


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Bheem, administrative sanction has already beenaccorded for the construction of a tribal museum and

memorial in Jodeghat village of Adilabad district at anestimated cost of Rs. 25 crore. An amount of Rs. 245.92crore has been proposed for the educational institutions intribal areas under the Plan.

SC and ST Sub-Plans

33. Though provisions are being made under the SC andST sub-plans in proportion to their population, there arenumerous instances of such provisions being diverted or

left unspent. To address this issue on a permanent basis,the Government have decided to place the fundsearmarked under SC and ST sub-plans at the disposal ofthe SC Development and the Tribal Welfare departments,respectively. The concerned nodal agencies will now beable to rebalance and reappropriate these amountsaccording to the actual needs and benefits. The amountsproposed under the SC and ST sub-plans in this Budgetare Rs.7579.45 crore and Rs.4559.81 crore, respectively.

Welfare of Backward Classes

34. People belonging to backward classes constituteabout 45 percent of the total population of the State. Noconcerted policy initiatives have been taken so far toimprove the lot of backward classes except establishing anumber of cooperative societies and financialcorporations to cater to the needs of various sections.

Most of these corporations remained ineffective indischarging their responsibilities for want of adequatefunding and policy framework from the Government.


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While concentrating on the educational development ofBCs, Government proposes to enhance equitable flows of

various development programmes towards these sectionsin an active manner. Overall, an amount of Rs.2,022crore is proposed to this sector under plan and non-plan.

Welfare of Minorities

35. Minorities constituting about 11 percent of theStates population continue to suffer from social andeconomic inequities putting a question mark on thesecular credentials of the successive Governments.

Though the past cannot be undone, the Government isdetermined to address the issues relating to the welfare ofminorities head on. In an unprecedented manner, wepropose to provide an amount of Rs.1,030 crore in thisyears Plan Budget for the welfare of minorities. This is asubstantial jump from the notional provision forTelangana amounting to Rs. 501.98 crore made in theVote on Account Budget of the combined State for the fullyear.

Kalyana Lakshmi

36. Women constituting 50 of the population suffermany socio economic handicaps even till date. Familiesacross different castes and religions consider girl child asan unbearable burden especially when it comes to theexpenses connected with marriage. To give a decent startto this important and crucial phase in her life, the

Government decided to introduce a new scheme called,Kalyana Lakshmi. Under the scheme, an amount ofRs.51,000 will be handed over to each bride belonging to


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SC, ST and minority communities at the time of hermarriage. The amounts proposed under the scheme in the

BE 2014-15 for SC, ST and Muslim brides are Rs.150,Rs. 80 crore and Rs 100 crore, respectively. Thecomponent pertaining to Muslim girls is named as ShadiMubarak.

Women and Child Welfare

37. A society in which women are not treated withrespect and care cannot claim to be civilized. Thecommon perception is that women are not safe if they are

alone. Concerned about the lack of safety to women andhigh incidence of rapes, the Government have constituteda Committee on issues relating to safety and security ofwomen and girls in Telangana. The Committee has madea number of recommendation for enhancing the safetyand security of women and girls and these are under theactive consideration of the Government. In the meantime,a Special Task Force has been formed in Hyderabad cityto protect women from eve teasing and assaults. An

amount of Rs. 10 crore has been proposed in this Budgetfor strengthening safety and security measures for women.

38.

Concerned over the nutritional deficiency,

Government have decided to pay special attention towomen and children. At present eight eggs per month arebeing provided to children in the age group of sevenmonths to three years. Government have decided todouble the number of eggs per month from eight to

sixteen. Children in the age group of three to six years arecurrently being supplied 16 eggs per month. This has beenincreased to 30 eggs per month. For pregnant and


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lactating women, the present supply is 25 eggs per monthand 200 m.l. of milk per day. This covers only 45 percent

of women. Government have decided to cover all eligiblepregnant and lactating women and to increase the supplyof eggs to 30 per month. An amount of Rs. 221 crore hasbeen proposed for this purpose in BE 2014-15. Thisrepresents nearly 300 percent increase over theTelanganaportion of the provision made in the VoA Budget for thefull year. Under the ICDS, the amount proposed is Rs.1103.88 crore.

39. The poor families in the rural areas are still usingdung and firewood for cooking which is a health hazard.To address this problem, an amount of Rs.100 crore hasbeen proposed for one-time free supply of LPGconnections to poor women.

Aasara

40. Government of Telangana as part of its social safetynet strategy have introduced Aasara pensions with a

view to ensuring dignified life to the old and the disabled.At present, the pension paid to the old aged, widows andthe disabled are inadequate even to meet the bareminimum necessities of life. Under the Aasara pension

scheme being introduced by the Government fromNovember 8, 2014, an amount of Rs. 1,000 per monthwill be paid to eligible old aged and widows. For thedisabled, the monthly pension will be Rs. 1,500 permonth. These enhanced pensions will secure a dignified

life to the beneficiaries. It is proposed to increase thepensions to handloom weavers and toddy tappers. Anamount of Rs.1317.77 crore has been proposed for the


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payment of pensions to the aged and the widows. Theamount proposed for pensions to the disabled is Rs.

367.75 crore in the BE for 2014-15.Education

41. Our Government is of the view that the amountspent on education should be treated as investment forhuman resource development and not as expenditure.

42. There is no better way to empower people than toprovide them with quality and affordable education. A

well-educated and employable youth can change the fateof the society within one generation spectacularly. LateProf. Jaya Shankar was of the firm belief that bydeveloping and expanding educational system, fresh classof citizens could not only be nurtured but also be

meaningfully engaged in evolving society. Publicprovision of education has suffered a great in terms ofquality, driving even the poor away from governmentschools. Education in Telangana suffered a great deal

because of neglect. The dropout rate in schools inTelangana is much higher than the national average. Thehigher dropout rate among the SC and ST school childrenis a matter of grave concern. The Government is

committed to overhauling and strengthening the publiceducation system from KG to PG in a phased andsystematic manner. A token amount of Rs.25 crore isproposed in the Budget to roll out the new strategy forimprovised KG to PG education. Government intends to

integrate and improvise the otherwise splintered andmarginalised education system in the State by putting theinterests of the students on top of the agenda. Under the


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Centrally assisted plan scheme, a provision of Rs.940.73crore has been proposed for setting up of model schools at

Mandal level as benchmarks of excellence. Under theRashtriya Madhyamik Siksha Abhiyan, an amount ofRs.906.40 crore has been proposed in BE 2014-15. TheGovernment is planning to improve the quality oftechnical education in the State thereby enhancing theemployability of students passing out of technicalinstitutions. An amount of Rs.212.86 crore has beenprovided under the Plan for Technical Education. Anamount of Rs. 119.63 crore has been proposed for the IIIT

at Basara.

Medical and Health

43. Our Government is of the firm belief thatexpenditure on health care is an investment in humandevelopment which will result in lasting benefits to thepopulation. In old Hyderabad State, Governmentprovided necessary health care with no cost or minimumcost to all the sections of the society. With the total

neglect of government hospitals and inadequate funding,private sector gained prominence as a result of which costof health care to the common man has increasedconsiderably with attendant malpractices. Years of neglectcannot be set right overnight. However, the Governmentis committed to the revival of public health systems andmake them affordable and reliable for the common man.The Government has made a beginning in the direction ofreviving and strengthening public health care byproposing a substantial increase in the provision underplan to the health sector to Rs. 2282.86 crore in the BE


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2014-15 as compared with the provision attributable toTelangana in the Vote on Account Budget of the

combined State amounting to Rs. 1277.39 crore. Withinthe overall provision, for the first time substantialprovisions have been proposed for Government Hospitals.For Gandhi and Osmania hospitals, the provisionsproposed in the Budget are Rs. 100 crore each. Forstrengthening the Maternity Hospitals at Petlaburz andSultanbazar, an amount of Rs. 50 crore has beenproposed and the proposed amounts for Niloufer andKing Koti Hospitals are Rs. 30 crore and 25 crore

respectively. Efforts are being made for upgradation ofdistrict hospitals into super speciality hospitals. Anamount of Rs. 1 crore each amounting to Rs 42 crore is

proposed for the upgradation of 42 area hospitals. Inaddition, an amount of Rs. 40 crore has been proposed forstrengthening of Eye, Mental, Chest and ENT Hospitals.The amount provided for medical college buildings isRs.152 crore. As the Honble Members will appreciate,this is the first time that such higher provisions are being

made for strengthening of government hospitals. I mayalso add that the Government have decided to establish aHealth University at Warangal.

Industry

44. The Government is of the firm view thatindustrialization alone holds the key for the higher growthtrajectory and employment generation. There wasnegative growth of industry sector in Telangana by 0.9percent in 2012-13. Though growth marginally picked upto 2.7 percent in 2013-14, it remains much below the


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desired level. For giving industrial growth a momentum,the State Government is in the process of unveiling most

attractive, effective and investor friendly industrial policy.A Chasing Cell will be established with the task ofmonitoring industrial approvals on day to day basis andthe Cell will act as a link between the prospectiveinvestors and the various Departments of the StateGovernment. It is proposed to establish a land bank withabout 5.0 lakh acres of Government land suitable forlocation of industries and hand it over to Telangana StateIndustrial Infrastructure Corporation (TSIIC). Provision

of facilities in this land such as water and electricity willbe provided by the TSIIC. For this an amount of Rs.100crore is proposed in this budget.

45. I am happy to inform the House that after theformation of our State, there has been good response fromthe Industry. Honble Chief Minister has recentlyinaugurated the consumer goods manufacturing unit ofProctor and Gamble involving an investment of Rs. 970

crore and an employment potential of 950 persons. Healso laid the foundation stone for the Johnson andJohnson manufacturing plants with an investment of Rs.450 crore in Mahabubnagar district. Tata Aerospace hasentered into a partnership to manufacture DornierAircraft main cabin and wing components as well as themajor parts for the Pilatus aircraft. Land has been given toTata Aerospace for this purpose. I am happy to informthe Honble Members that the booster rocket that put the

Mangalyan into Mars orbit has been manufactured by aHyderabad based company.


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46. As an important step towards assuring the industryof the commitment of the State, an amount of Rs. 638

crore is proposed in the Budget toward clearing theincentive dues payable to the industry located in the State,which the combined State postponed. In addition, anamount of Rs.100 crore each has been proposed towardspower subsidy to industry and for the development ofinfrastructure facilities. For the Hyderabad InformationTechnology and Investment Region (ITIR), an amount ofRs.90 crore has been proposed in the BE 2014-15. Effortsare on to make Singerani Collieries diversified and to

make it an active player in the industrial growth of theState. Options to acquire coal mines in other countrieswill be explored by the company. A major national

project which has been taken up in Telangana is theNational Investment and Manufacturing Zone (NIMZ) inMedak district. This zone will be spread over 12,365 acresand can host major manufacturing anchor clients besidestheir ancillaries. The NIMZ, Medak has the potential toattract investments of over Rs.40,000 crore and to provide

direct employment to 3 lakh people besides supporting4.50 lakh jobs indirectly.

47. The policy of the Government is to ensure balanceddevelopment by developing other towns apart fromHyderabad. A textile Park is being planned to be set up atWarangal. Recognising the gaps in the innovation-entrepreneurship-investment ecosystem resulting in poorsocio-economic outcomes, The Government of Telangana

proposes to link research institutes, academia andindustry in and around Hyderabad under the umbrella ofResearch and Innovation Circle of Hyderabad (RICH).


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48. Apart from providing land to landless families, theGovernment have decided to promote entrepreneurship

among the SCs. An amount of Rs.19.30 crore has beenproposed as an incentive to SC entrepreneurs setting upindustrial units.

Power loom Weavers

49. As the Honble Members are aware, powerloomweavers in the State are in dire straits. To provideimmediate relief to them, the Government have decidedto provide loan waiver up to Rs. 1 lakh per weaver family.

Urban Development

50. Hyderabad with its metropolitan culture andsalubrious climate is already on the radar of globalinvestors. The pressure of growing population hasstretched the civic infrastructure to its limits. Therefore,there is an imperative to invest in the improvement ofinfrastructure in Hyderabad to retain its attractiveness to

global investors. The goal is to make Hyderabad a safer,smarter and slum free city. Several initiatives are beingtaken to make this a reality sooner than later.

51. The first and foremost priority is to make the citysafe and crime free. As the Honble Members are aware,The Government have released an amount of Rs.350crore for building a rapid response system capable ofreaching any trouble spot within a maximum time of 10minutes in twin cities. Towards this end, vehiclesequipped with GPS and computer systems have alreadybeen provided to the city police. Further amounts


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proposed in this Budget for installation of CCTVsurveillance systems in the areas covered under

Hyderabad and Cyberabad city Police Commissioneratesare Rs. 44.59 crore and Rs. 25 crore, respectively. It isalso proposed to make the police stations in the citycitizen friendly, for which an amount of Rs.20 crore hasbeen proposed under the Plan to the Commissioner ofPolice, Hyderabad. For technology backbone for citizen-centric traffic management and for fighting organizedcrime, an amount of Rs.31.41 crore has been proposed.For the construction of barracks and camping centres, an

amount of Rs.45 crore has been proposed for theCommissionerate, Cyberabad Police.

52. The Government have proposed to step upassistance to Greater Hyderabad Municipal Corporation,Hyderabad Metro Railway, Hyderabad MetropolitanWater Supply and Sewerage Board for improving civicamenities in the city. The proposed assistance to GHMCfor taking up slum free programme is Rs. 250 crore in BE

2014-15. An amount of Rs.416.67 crore has beenproposed as loans to Hyderabad Metro Rail. Theassistance proposed to HMWSSB for improvement ofwater supply in slum areas of Hyderabad, Krishna andGodavari water supply schemes and sewerageimprovement is Rs.581 crore.

53. The Government is equally committed to thedevelopment of civic amenities in other municipal areas.Under the Centrally assisted development scheme forsmall and medium towns, an amount of Rs. 374.73 crorehas been proposed in this Budget. An amount of Rs. 200


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crore has been proposed under the externally aidedMunicipal Development Project for improvement of

drinking water supply and sanitation facilities inmunicipal areas. In addition, an amount of Rs, 150 croreis proposed as assistance to municipalities under theaward of the State Finance Commission.

Road Network

54. Roads are considered as proxy for culture andprosperity. They become even more important for a Statelike Telangana whose economy is service sector oriented

and has chosen manufacturing as its future. Inadequateprovisioning and maintenance over the years have left theroad network patchy and degenerated. Governmentattaches high priority for rectifying the situationimmediately and decided to allocate an amount of Rs10,000 crore over two year period including the Rs 4,000crore proposed in the current years Budget with theamount distributed between R&B and PR departments.With a view to completing road improvement, the

Government have set up a Cabinet Sub-Committee underthe Chairmanship of Dr. T. Rajaiah, Honble DeputyChief Minister to prepare an action plan and to explorethe desirability of setting up of a dedicated organizationfor this purpose. It is proposed to take up double laningof roads connecting Mandal HQs to district HQs at a costof Rs. 400 crore during the current year. TSRTC buses arethe main means of transport for the common man. Toimprove the bus services, an amount of Rs. 400 crore isproposed out of which Rs 250 is already released. Shortly,


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about 1,000 new buses are proposed to be added to theexisting fleet of TSRTC.

Energy Sector

55. Today, it is not at all an exaggeration to say thatenergy is the basis of life and prosperity. It is even moreimportant for Telangana State where lives of majority ofits farm families and lakhs of industrial and service sectoremployees are closely intertwined with availability ofgood quality power. The lopsided policies of theerstwhile AP government pushed the state into power

penury in spite of it being the home for rich coal mines ofSingareni and Godavarikhani. This is adversely affectingthe industry as well as the agriculture sector. To overcomethe power crisis, the Government has taken severalmeasures and is planning to add 20,000 MW of powergeneration in the next five years. Honble Chief Ministerpersonally visited Chattisgarh and a Memorandum ofUnderstanding has been signed with the Chattisgarhgovernment for the purchase of 1,000 MW of power. The

National Thermal Power Corporation has agreed to setup 4,000 MW power generating plant at Ramagundam.The Government of Telangana has recently signed aMoU with Bharat Heavy Electricals Limited for theerection of thermal power plants with a generatingcapacity of 6,000 MW on EPC basis. As these initiativeswill result in augmentation of generating capacity over thenext three to four years, to tide over the present shortageof power, the Government has authorized TSGENCO topurchase power, even though the cost of such power isvery high. Apart from augmenting the conventional


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sources of energy, the Government is encouraging solarpower generation in the State. Our goal is to make

Telangana a power surplus State. With a view toaugmenting power supply to agriculture, an amount ofRs.200 crore has been proposed to promote the use ofsolar pump sets. Similarly an amount of Rs. 40 crore isprovided to promote roof top solar power. Besidesservicing the bonds, a provision of Rs.1,000 crore hasbeen proposed towards investments in TSGENCO underthe State Plan. In addition, an amount of Rs.3241.90crore is provided to the energy sector under non-plan.

This includes a provision of Rs.3,000 crore towards powersubsidy.

Forest and Environment

56.

As the Honble Members are aware, theGovernment have launched a new flagship scheme called,Telangana Ku Haritha Haram. The scheme envisagesenrichment of the biodiversity of the State through amassive plantation of 230 crore trees over the next three

to four years. The scheme is sought to be implementedthrough a multi-pronged approach consisting ofrejuvenating degraded forests, ensuring better protectionto the existing forests, intensive soil and moistureconservation measures and social forestry. TheGovernment is confident that all the gram panchayats andpeoples representative will ensure planting of at least 40lakh saplings in each Assembly Constituency. About3,600 nurseries have been identified for raising adequatenursery stock during the Mana Vooru Mana Pranalikaprogramme. A corpus fund of Rs. 300 crore is proposed


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for Haritha Haram in the BE 2014-15. Funds from theState plan, CAMPA and MGNREGA are proposed to be

tapped for this purpose.57. A Forest College is proposed to be set up for whichthe amount proposed in the Budget is Rs. 10 crore.

Culture, Tourism and Sports

58. Formation of our own State is an opportunity torevive our rich culture and traditions and bring alive thepast glory. Losing no opportunity, the Government have

declaredBathukamma

and

Bonalu

as State festivals.The fervor and spectacular manner with which the

Government organized the Bathukamma festival havegone a long way in emotionally integrating the people ofTelangana. To promote culture, Telangana Kala Bhavan

at Hyderabad and Kaloji Cultural Centre at Warangal areproposed for which the provision proposed in the Budgetis Rs. 15 crore. Telangana Kala Bhavan is proposed to beestablished in an area of 11 acres near Indira Park with

best international standards.

59. Telangana Kalakarulu have played a stellar role intaking forward the movement for statehood of Telangana.The Government have taken a decision to utilize theservices of Kalakarulu to spread awareness aboutgovernment programmes and to enlist the support ofpeople. An amount of Rs.11 crore has been proposed forthe scheme named as Samskrithika Sarathi.

60.

Yadagirigutta is a holy place revered in Telangana.It is proposed to develop the Yadagirigutta Devastanam


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on the lines of TTD. The proposals are afoot to develop400 acres as Narsimha Abhayaranyam and to develop

parks, marriage halls meditation centres, Veda Patasalaand construct cottage in about 1,600 acres of land. Forthis purpose, an amount of Rs.100 crore has beenproposed in BE 2014-15.

61.

For Godavari Pushkaralu, the amount proposed isRs.100 crore.

62. Telangana has immense potential for attractingtourists. This potential remained untapped. To unlock the

potential, an amount of Rs.60 crore has been proposed inBE 2014-15 for infrastructure development in touristdestinations and circuits.

63. The Government have demonstrated itscommitment to promote sports and youth affairs in theState by suitably rewarding the medal winning sportspersons. An amount of Rs.90 crore has been proposed forthe construction of sports stadia and modernization of

sports facilities at different locations in the State.

Constituency Development Programme

64.

I am happy to inform the Honble Members of thisHouse that the provision under the ConstituencyDevelopment Progrmme is proposed to be increased fromRs. 1 crore per constituency to Rs. 1.50 crore perconstituency per annum. Accordingly an amount of

Rs.234 crore has been proposed in this Budget.


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Administrative Reforms

65. The present administrative procedures and rules in

vogue in the government are archaic and outlived theirpurpose. They have become more of an hindrance in the

smooth and expeditious functioning of the Government.The Government have decided to revise the business rulesand procedures to make administration more responsiveto the needs of the people. The State Government willshortly put in place a Comprehensive FinancialManagement System. Once operational, all financialtransactions in the State will be online eliminatingdiscretion and delays ushering in a total transparentsystem of financial management. Evaluation is animportant tool to ensure that ongoing schemes result inthe achievement of stated objectives.

Employee Welfare

66. One of the commitments of our Government is to beemployee friendly and the Government is confident that

the employees will more than reciprocate by rededicatingthemselves to the service of people, thus becoming publicservants in true sense of the term. Recognising their role,Government have sanctioned Telangana increment andassured the employees that there will not be any transfersat short intervals except on grounds of administrativeexpediency. Bringing the pay scales of employees on parwith those of the Central Government is also under theconsideration of the Government. The Government have

decided to issue health cards to government employees,teachers and pensioners as Deepavali gift, which willenable them to get medical treatment in any government


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or private hospital without any limit and without anypayment. The Government is also examining the issue of

regularizing contractual employees.Housing

67. As the Honble Members are aware, weaker sectionshousing suffered a great deal because of rampantirregularities and corruption, depriving the poor thebenefit of weaker sections housing. Even the houses thatwere constructed had only one bedroom depriving privacyand causing inconvenience to family members of the

poor. The Government is planning to take up theconstruction of houses with two bed rooms, a hall,kitchen, bathroom and a lavatory at a unit cost of Rs.3.5lakhs. The amount proposed for weaker sections housingin the BE 2014-15 is Rs.1,000 crore.

68. Many poor people have gone to the Gulf countriesin search of a better livelihood after borrowing heavilyfrom money lenders only to return humiliated after failing

to secure a job there. They are a pathetic lot. Moved bytheir plight, the Government is planning to put in place apackage for their assistance.

69. Many of the unemployed youth in the State eke outa living as auto drivers. To make their lives easier, theGovernment have abolished tax on autos. Arrears of taxon autos amounting to Rs.76.26 crore has also beenwaived. To encourage the use of tractors and to provide

relief to farmers owning them, the taxon tractor andtractor trailers amounting to Rs.56.87 crore has also beenabolished.


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70. Advocates are an important and respected group ofprofesssionals in the state helping in proper dispensation

of justice. Recognising their invaluable contributions tothe society, it is proposed to provide an amount of Rs 100crore towards their welfare.

71.

Journalists have an important role in spreadingawareness among people. In recognition of their role, theGovernment have decided to provide them with healthcards and allocate Rs 10 crore for their welfare includingconstruction of Journalist Bhavan at Hyderabad. TheGovernment have also decided to provide food securitycards to all eligible families in the State.

Budget Estimates 2014-15

72.

For the 10 months of the financial year 2014-15,

Government proposes total expenditure of Rs.1,00,637.96crore of which the non-plan expenditure is estimated atRs.51,989.49 crore and plan expenditure at Rs. 48,648.47crore. The estimated revenue surplus is Rs. 301.02 crore.

The marginal revenue surplus is entirely on accountofadditional resource mobilisation proposed in the Budget.The fiscal deficit is estimated at Rs. 17,398.72 crore.As a percentage of GSDP, the estimated fiscal deficit is

4.79 percent. These estimates are contingent on theState Government realising ambitious additional revenuemobilisation targets and receipt of the budgeted grantsfrom the Government of India.

73.

Normally, the Budget is more about numbers butthis budget is more about our people and their wellbeing.This Budget has been formulated with an objective of


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delivering a sustainable future for our children andgenerations beyond. The new State of Telangana has

strengthened the faith of people in their own future andthe faith of every citizen in Telangana. The long journeyto the realisation of Bangaru Telanganahas just startedand with the active participation of people, there will beno looking back till we reach our destination, which willbe sooner than later. Speaker Sir, with this, I commendthe Budget for the approval of the House.

// JAI TELANGANA//

Telangana Budget Speech

Documents

Transcript of Telangana Budget Speech