Telangana begins exercise for Budget 2022-23


The Telangana government has commenced the exercise for the preparationof budget proposals for the financial year 2022-23.

According to sources, the State government may continue to prioritise agriculture and allied activities, which was done in the current year’s budget as well. It is also likely that health and family welfare may attract higher allocations, given the continuing challenge of Covid and the need to augment public health infrastructure.

Special Chief Secretary (Finance) K Ramakrishna Rao has directed all the heads of the departments to submit their budget proposals before January 17, 2022. These proposals will be examined by the secretaries of each department and will be sent to the Department of Finance on or before January 18, 2022.

The proposals for the upcoming financial year should be submitted by way of identifying an expenditurefor various schemes. The revised expenditure details for the current financial year (2021-22) shouldalso be sent along with proposals for upcoming year, as per the directive of the finance department.

Expenditure jumped in FY22

As per the budget proposals for the year 2021-22,the state government pegged total expenditure at RsRs 2,30,826 crore, marking 13 per cent increase over the actual expenditure in 2019-20. The fiscal deficitin 2021-22 is estimated to be Rs 45,510 crore (3.94 per cent of GSDP). As per revised estimates, in 2020-21, the fiscal deficit is estimated to be 4.33 per cent of GSDP, which is higher than the budget estimate (3 per cent of GSDP).

In the allocations for the present financial year, the State Government gave top priority to agriculture and allied activities with ₹ 26.822 crore followed by social welfare and nutrition. The allocation for health and family welfare decreased by 3 per cent at ₹5,868 crore compared to the allocation in 2019-20 budget. The government had allocated only 3 per cent of its total expenditure on health, which is lower than the average allocation for health by states which was at 5.5 per cent.

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