Telangana govt plans staggering budget for 2016-17

The Telangana State government, in its continuous endeavour to be seen as doing better than the Andhra Pradesh government, has decided to present a staggering budget of about Rs 1.40 lakh crore for 2016-17.

Even Though Telangana state has fewer districts , population and Gross State Domestic Product (GSDP) than Andhra Pradesh, the finance department is learnt to have been instructed by chief minister of telangana K Chandrasekhar Rao to ensure that the next budget hits a figure that Andhra Pradesh cannot match.

According to telangana top government sources, the next Telangana budget is expected to peg the plan expenditure at Rs 62,000 crore with non-plan expenditure expected to range between Rs 78,000 crore and Rs 80,000 crore. These estimates are designed to make Telangana appear as a larger economy compared to Andhra Pradesh though the latter reported higher Gross Domestic Product than Telangana.

Andhra Pradesh, on the other hand, is expected to present a Rs 1.30 lakh crore budget for the 2016-17 fiscal as indicated by finance minister Yanamala Ramakrishnudu a week back.

Telangana state with a higher budget will have an advantage in raising loans from external and domestic funding agencies. Even the Fiscal Responsibility and Budgetary Management (FRBM) rules favour those who have higher budgetary allocations.

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