Economy and Development of Telangana
Overview
Growth and Resilience: Telangana’s economy exhibits growth and resilience, navigating challenges while advancing towards development.
1. Macroeconomic Trends
Sectoral Contributions to GSVA:
Service Sector: 65.7%
Industrial Sector: 18.5%
Agriculture & Allied Sectors: 15.8%
Per Capita Income:
Increased from Rs. 1,24,104 in 2014-15 to Rs. 3,47,299 in 2023-24.
Debt:
Total debt rose from Rs. 72,658 crore to Rs. 6,71,757 crore (824.5% increase).
2. Public Finance
Sector-wise Allocation of Funds:
Agriculture: Rs. 19,746 crore
Education: Rs. 21,389 crore
Medical and Health: Rs. 11,500 crore
Irrigation: Rs. 28,024 crore
Energy Infrastructure (Transco and Discoms): Rs. 16,825 crore
Panchayat Raj and Rural Development: Rs. 40,080 crore
Municipal Administration: Rs. 11,692 crore
SC Welfare: Rs. 21,874 crore
ST Welfare: Rs. 13,313 crore
BC Welfare: Rs. 8,000 crore
Minorities Welfare: Rs. 2,262 crore
3. Agriculture and Allied Sectors
Contribution to GSVA:
Increase from Rs. 2,03,247 crore (2022-23) to Rs. 2,11,422 crore (2023-24).
Land Holdings:
Average size decreased to 0.89 hectares from 1.00 hectare in 2015-16.
Government Initiatives:
Rythu Bharosa program, farm loan waiver, comprehensive crop insurance scheme.
4. Horticulture
Oil Palm Cultivation:
NMEO-OP scheme: 1 lakh acre by 2024-25, with a budget of Rs. 348.81 crore.
5. Animal Husbandry and Fisheries
Livestock Population:
Sheep: 190.63 lakh, Poultry: 799.99 lakh, Buffalo: 42.26 lakh, Goat: 49.35 lakh, Cattle: 42.31 lakh, Pig: 1.78 lakh.
Per Capita Availability:
Eggs: 392, Meat: 23.97 kilograms.
6. Forest and Environment
Vanamahotsavam:
Increase tree cover from 24% to 33%.
2,002 lakh seedlings to be planted in 2024-25.
Key Points for Public Service Exams
Macroeconomic Trends:
Key sectoral contributions: Service, Industrial, Agriculture.
Significant rise in per capita income.
Sharp increase in state debt.
Public Finance:
Major sector-wise fund allocations (Agriculture, Education, Health, etc.).
Agriculture:
Decrease in average landholding size.
Government initiatives like Rythu Bharosa, farm loan waivers, and crop insurance.
Horticulture:
Promotion of oil palm cultivation under NMEO-OP scheme.
Animal Husbandry and Fisheries:
Data on livestock population.
Per capita availability of eggs and meat.
Forest and Environment:
Vanamahotsavam program targets and initiatives.
Social Infrastructure and Development in Telangana
Overview
Focus: Enhancing social infrastructure and ensuring sustainable living standards.
Priorities: Well-being of SCs, STs, BCs, and Minority Communities.
Key Areas: Health, education, urban-rural balance.
1. Welfare
Special Development Funds:
Scheduled Castes and Scheduled Tribes Special Development Fund Act, 2017
SC Special Development Fund (SCSDF): Rs. 36,750.48 crore for 2023-24.
ST Special Development Fund (STSDF): Rs. 15,232.62 crore for 2023-24.
Kalyana Lakshmi/Shadi Mubarak Scheme:
Financial support of Rs. 1,00,116 for unmarried girls above 18.
Expanded to include inter-caste and love marriages.
Total disbursement for 2023-24: Rs. 236.67 crore for SC, Rs. 177.38 crore for ST, Rs. 831.64 crore for BC/EBC, Rs. 419.13 crore for minority families.
2. Education and Skill Development
International Schools:
One international school in every mandal.
Skill University:
Establishment at Engineering Staff College, Gachibowli.
3. Health and Wellbeing
Rajiv Arogyasri Scheme:
Medical coverage increased from Rs. 5 lakh to Rs. 10 lakh.
Covers 1,672 medical procedures and 32 specialty services.
1406 health facilities, including 364 private hospitals, empanelled.
4. Women and Child Development
Integrated Child Development Services (ICDS):
Also known as Anganwadi Services Project.
149 projects across 33 districts.
35,700 Anganwadi Centers providing supplementary nutrition, preschool education, and health education.
5. Panchayati Raj and Rural Development
Cheyutha Pension Scheme:
Comprehensive safety net for vulnerable segments of society.
Rs. 5774.15 crore disbursed to over 43 lakh beneficiaries (Dec 2023 - May 2024).
6. Municipal Administration & Urban Development
Musi River Development:
55 km stretch development: amusement parks, water sports, street vending zones, business areas, shopping malls.
Connecting heritage sites: Charminar, Qutub Shahi Tombs.
Rejuvenation and riverfront development.
Rs 1,000 crore allocated for 2024-25.
Key Points for Public Service Exams
Special Development Funds:
SC Special Development Fund (SCSDF): Rs. 36,750.48 crore.
ST Special Development Fund (STSDF): Rs. 15,232.62 crore.
Kalyana Lakshmi/Shadi Mubarak Scheme:
Financial support for unmarried girls above 18.
Total disbursement for 2023-24: Rs. 236.67 crore for SC, Rs. 177.38 crore for ST, Rs. 831.64 crore for BC/EBC, Rs. 419.13 crore for minority families.
Education Initiatives:
One international school in every mandal.
Skill University at Engineering Staff College, Gachibowli.
Rajiv Arogyasri Scheme:
Medical coverage increased to Rs. 10 lakh.
1406 health facilities empanelled.
Integrated Child Development Services (ICDS):
149 projects across 33 districts.
35,700 Anganwadi Centers.
Cheyutha Pension Scheme:
Rs. 5774.15 crore disbursed to over 43 lakh beneficiaries.
Musi River Development:
55 km stretch development.
Rs 1,000 crore allocated for 2024-25.
Economic Infrastructure in Telangana
Overview
Significance: Industrial and service sectors significantly contribute to employment generation, income growth, and overall economic development.
Key Sectors: Information technology, textiles, manufacturing, healthcare, education, hospitality.
1. Industrial and Service Sectors
Economic Contribution:
Service Sector: 65.7% of Telangana's GSDP (2023-24).
Industrial Sector: 18.5% of Telangana's GSDP (2023-24).
Growth Dynamics:
Service sector’s performance compared to national average.
Role in driving economic growth and attracting investments.
2. Energy Sector
GSDP Increase:
Increase by Rs. 2,291 crore from 2022-23 to 2023-24.
Figures: Rs. 22,229 crore (2022-23) to Rs. 24,520 crore (2023-24).
3. Transportation
Green Initiatives:
Launch of 25 e-metro AC buses (Sept 2023).
Operation of 25 e-Metro Express buses (March 2024).
Deployment of 500 city e-buses and 550 intercity e-buses by Oct 2024.
4. Industrial Development
Growth Statistics:
Industrial Sector’s GSVA increase: Rs. 2,25,663 crore (2022-23) to Rs. 2,48,505 crore (2023-24).
Subsector Growth:
Mining and Quarrying: 10.5%
Manufacturing: 9.6%
Electricity, Gas, Water Supply, and Other Utilities: 10.3%
Construction: 10.9%
5. Service Sector
Trade, Repair, and Hospitality:
GSVA increase by 20.81%, rising from Rs. 2,11,711 crore (2022-23) to Rs. 2,55,771 crore (2023-24).
Subsector growth:
Trade and Repair: 21.2%
Hospitality Sector: 14.8%
Transportation, Storage, Broadcasting, and Communication:
GSVA increase by 15%, from Rs. 89,081 crore (2022-23) to Rs. 1,02,453 crore (2023-24).
Subsector contributions: Railways, Road Transport, Water Transport, Air Transport, etc.
Transport and services incidental to transport saw a 16.80% increase.
Key Points for Public Service Exams
Service Sector Contribution:
65.7% to Telangana's GSDP in 2023-24.
Industrial Sector Contribution:
18.5% to Telangana's GSDP in 2023-24.
Increase in GSVA from Rs. 2,25,663 crore to Rs. 2,48,505 crore.
Energy Sector Growth:
GSDP increase from Rs. 22,229 crore to Rs. 24,520 crore.
Transportation Initiatives:
Launch of 25 e-metro AC buses and 25 e-Metro Express buses.
Deployment of 500 city e-buses and 550 intercity e-buses by Oct 2024.
Industrial Growth:
Subsector growth rates: Mining and Quarrying, Manufacturing, Utilities, Construction.
Service Sector Performance:
Trade, Repair, and Hospitality: 20.81% increase.
Transportation, Storage, Broadcasting, and Communication: 15% increase.
Social Safety Net Programs and Digital Governance in Telangana
Overview
Purpose: Enhance social infrastructure, promote transparency, accountability, and equitable development.
Key Focus Areas: Pensions, financial aid, scholarships, welfare schemes.
1. Social Safety Net Programs
Key Schemes:
Pensions for the Elderly: Financial support for senior citizens.
Financial Aid for Women: Support schemes for women's empowerment.
Scholarships: Educational aid for deserving students.
Welfare Schemes for Farmers:
Rythu Bharosa: Support for farmers.
Gruha Jyothi: Housing assistance.
Indiramma Indlu: Housing scheme.
Cheyutha Pensions: Support for vulnerable populations.
Kalyana Lakshmi/Shadi Mubarak Scheme: Financial support for marriages.
Implementation Emphasis:
Simplifying application processes.
Ensuring direct benefits to intended beneficiaries.
Promoting transparency and accountability.
2. Digital Governance
Praja Palana:
Online platform and mobile app for accessing main guarantee schemes.
User-friendly interfaces for easy access.
Praja Palana Seva Kendras (PPSKs):
Set up at MPDO offices, municipal offices, and GHMC circle offices.
Assist applicants in rectifying/updating data and accessing benefits.
956 operational PPSKs (556 rural, 400 urban).
Praja Vani:
Public grievance redressal system.
Multi-channel approach: online portal, physical counters, phone calls, WhatsApp.
Promotes citizen engagement and effective resolution of grievances.
E-Governance Adoption:
Telangana leading in e-transactions per 1,000 people (eTaal report).
Real Time Digital Authentication of Identity (RTDAI):
Facial recognition for pensioners.
Reduces fraud, speeds up pension processing.
Database includes 2.65 lakh pensioners, authentication once a year.
3. Government Initiatives and Future Outlook
Current and Upcoming Initiatives:
Reflect strong economic performance.
Improvements in development metrics across all sectors.
Positive outlook for fulfilling citizens' aspirations.
Key Points for Public Service Exams
Social Safety Net Programs:
Key schemes: Pensions, Rythu Bharosa, Gruha Jyothi, Indiramma Indlu, Cheyutha pensions, Kalyana Lakshmi/Shadi Mubarak.
Emphasis on simplifying processes, direct benefits, and accountability.
Digital Governance:
Praja Palana platform and app.
Praja Palana Seva Kendras (PPSKs) for assistance.
Praja Vani grievance redressal system.
Leading state in e-transactions (eTaal report).
Real Time Digital Authentication of Identity (RTDAI):
Facial recognition for pension verification.
Database of 2.65 lakh pensioners.
Future Initiatives:
Focus on economic performance and development metrics.
Economic Overview of Telangana
1. Sectoral Contribution to the Economy
Key Sectors:
Agriculture & Allied Sector
Industries (including mining and quarrying)
Services
2023-24 Sectoral GSVA Contributions:
Service Sector: 65.7%
Industrial Sector: 18.5%
Agriculture & Allied Sector: 15.8%
2. Per-Capita Income and Debt
Per Capita Income:
2014-15: Rs. 1,24,104
2023-24: Rs. 3,47,299
Total Debt:
2014-15: Rs. 72,658 crore
2023-24: Rs. 6,71,757 crore (824.5% increase)
Per Capita Debt:
2014-15: Rs. 20,251
2023-24: Rs. 1,76,360
Key Point: Rising debt indicates a heavy reliance on borrowing, potentially risking fiscal sustainability without stringent fiscal reforms.
3. Gross Value Added (GVA)
Concept: Measures the contribution of sectors to overall output by subtracting the value of intermediate goods and services from the total output value.
Example: Value of oranges subtracted when calculating the GVA of a firm producing orange juice.
4. Economic Growth and Resilience
Telangana’s GSDP (2023-24):
Current Prices: Rs. 14.64 lakh crore (11.9% increase)
Per Capita Income (PCI):
2023-24: Rs. 3.47 lakh
Higher than national average by Rs. 1.64 lakh.
Sectoral Growth (2022-23 to 2023-24):
Agriculture & Allied Sectors: 4.0% growth
Employs 47.3% of the population.
Industrial Sector: 10.1% growth
Services Sector: 14.6% growth
Key Points for Public Service Exams
Sectoral GSVA Contributions (2023-24):
Service Sector: 65.7%
Industrial Sector: 18.5%
Agriculture & Allied Sector: 15.8%
Per Capita Income:
Increased from Rs. 1,24,104 (2014-15) to Rs. 3,47,299 (2023-24).
Total Debt Increase:
824.5% increase, from Rs. 72,658 crore to Rs. 6,71,757 crore (2014-15 to 2023-24).
Gross State Domestic Product (GSDP):
Current Prices (2023-24): Rs. 14.64 lakh crore.
Sectoral Growth:
Agriculture & Allied Sectors: 4.0%
Industrial Sector: 10.1%
Services Sector: 14.6%
Telangana's Economic Performance
1. GSDP at Current Prices
2023-24 Nominal GSDP:
Valued at Rs. 14.64 lakh crore
Growth rate: 11.9%
Comparison to National Economy:
National GDP growth: 9.1%
Difference: 2.8 percentage points
2022-23 Nominal GSDP:
Growth rate: 16.4%
National GDP growth: 14.2%
Difference: 2.2 percentage points
Ranking:
Tamil Nadu: 14.2%
Uttar Pradesh: 12.8%
Telangana: 11.9%
Contribution to National GDP:
2021-22: 4.80%
2022-23: 4.90%
2023-24: 5.00%
2. GSDP at Constant (2011-12) Prices
2023-24 Real GSDP:
Growth rate: 7.4%
National real GDP growth: 7.6%
Difference: 0.2 percentage points
2022-23 Real GSDP:
Growth rate: 6.9%
National real GDP growth: 7.0%
Difference: 0.1 percentage points
Comparison to Other States:
Odisha: 8.5%
Tamil Nadu: 8.2%
Telangana: 7.4%
3. Per-Capita Income
2023-24 Per Capita Income: Rs. 3,47,299
Comparative Growth:
2021-22:
Telangana: Rs. 2,69,161
National average: Rs. 1,50,906
2022-23:
Telangana: Rs. 3,11,649
National average: Rs. 1,69,496
2023-24:
Telangana: Rs. 3,47,299
National average: Rs. 1,83,236
Multiplier Effect:
2021-22: 1.78
2023-24: 1.90
Key Points for Public Service Exams
Telangana's Nominal GSDP:
2023-24: Rs. 14.64 lakh crore
Growth rate of 11.9%, outpacing national growth rate of 9.1%
Telangana's Contribution to National GDP:
Increased from 4.80% in 2021-22 to 5.00% in 2023-24
Telangana's Real GSDP Growth:
2023-24: 7.4% growth, close alignment with national growth rate
Per Capita Income:
2023-24: Rs. 3,47,299, significantly higher than the national average of Rs. 1,83,236
State Comparisons:
Telangana’s GSDP and per capita income growth compared with other states like Tamil Nadu, Odisha, and Uttar Pradesh
These points highlight the significant aspects of Telangana’s economic performance and are likely to be relevant for public service exams. Does this help with your study plan?
Sectoral Contribution to Telangana's Economy
1. Overview of Key Sectors
Three Key Sectors:
Agriculture & Allied Sector
Industries (including mining and quarrying)
Services
2. GSVA Contributions (2023-24)
Service Sector:
Accounted for 65.7% of Telangana’s GSVA
Industrial Sector:
Accounted for 18.5% of Telangana’s GSVA
Agriculture & Allied Sector:
Accounted for 15.8% of Telangana’s GSVA
3. Trends in Sectoral Contributions (2021-2024)
Agriculture & Allied Sector:
2021-22: 18.0%
2022-23: 17.0%
2023-24: 15.8%
Industrial Sector:
2021-22: 19.8%
2022-23: 18.8%
2023-24: 18.5%
Service Sector:
2021-22: 62.2%
2022-23: 64.2%
2023-24: 65.7%
4. Comparison with National Averages
India's Sectoral Contribution:
Service Sector: 54.9% of national GVA
Telangana’s share in national GVA (2023-24): 15.8% for Agriculture, 18.5% for Industries, 65.7% for Services
5. Sectoral Growth Rates (2021-2024)
National Growth:
Services Sector (2023-24): 9.5%
Industries Sector (2023-24): 7.9%
Agriculture & Allied Sector (2023-24): 4.6%
Telangana Growth:
Agriculture & Allied Sector (2023-24): 4.0%
Industrial Sector (2023-24): 10.1%
Services Sector (2023-24): 14.6%
Key Points for Public Service Exams
Sectoral GSVA Contributions (2023-24):
Service Sector: 65.7%
Industrial Sector: 18.5%
Agriculture & Allied Sector: 15.8%
Trends in Sectoral Contributions:
Decline in Agriculture & Allied Sector contribution from 18.0% (2021-22) to 15.8% (2023-24)
Stability in Industrial Sector contribution around 18.5%-19.8%
Increase in Service Sector contribution from 62.2% (2021-22) to 65.7% (2023-24)
Comparison to National Averages:
Telangana’s Services sector outperforms the national average (65.7% vs 54.9%)
Sectoral Growth Rates:
Agriculture & Allied Sector: 4.0% (Telangana, 2023-24)
Industrial Sector: 10.1% (Telangana, 2023-24)
Services Sector: 14.6% (Telangana, 2023-24)
Sectoral Contribution and Economic Performance in Telangana
1. Sectoral Contribution to Growth Rates of Gross Value Added (GVA)
Overall Trends (2021-2024):
Service Sector: Major driver of GSVA growth; declined from 14.4% to 9.4%.
Agriculture & Allied Sector: Declined from 1.2% to 0.7%.
Industrial Sector: Declined from 3.0% to 1.9%.
National Trends:
Agriculture & Allied Sector: Declined from 2.2% to 0.8%.
Industrial Sector: Declined from 6.9% to 2.2%.
Service Sector: Declined from 9.6% to 5.2%.
2. Gross District Domestic Product (GDDP)
District-Level Contributions:
Not all districts contribute equally to Telangana’s GSDP.
16 out of 33 districts had growth rates higher than the national nominal GDP growth rate (14.2%) in 2022-23.
3. Per Capita Income (2022-23)
Overall Trends:
All 33 districts had a higher PCI than the national average (Rs. 1,69,496).
Highest PCI: Rangareddy district (Rs. 9,46,862).
Lowest PCI: Districts like Vikarabad, Kumuram Bheem, and Jagtial showed lower PCI.
Economic Disparities:
High PCI in urban and industrialized districts like Hyderabad.
Lower PCI in less industrialized and urbanized districts.
4. Employment
Key Indicators:
Labour Force Participation Rate (LFPR)
Telangana: 66.5% (2022-23)
National: 61.6%
Female LFPR: Telangana (50.4%) vs National (39.8%)
Rural Female LFPR: Telangana (62.4%) vs National (44.3%)
Worker Population Ratio (WPR)
Telangana: 63.4% (2022-23)
National: 59.5%
Rural WPR: Telangana (+8.5 percentage points over national average)
Urban WPR: Telangana (-0.9 percentage points under national average)
Male WPR: Telangana (77.7%) vs National (80.2%)
Female WPR: Telangana (48.4%) vs National (38.5%)
Key Points for Public Service Exams
Sectoral Contribution to GVA Growth:
Service Sector: Major contributor but declined from 14.4% to 9.4%.
Agriculture & Allied Sector: Declined from 1.2% to 0.7%.
Industrial Sector: Declined from 3.0% to 1.9%.
District Contributions to GSDP:
16 out of 33 districts exceeded the national GDP growth rate (14.2%) in 2022-23.
Per Capita Income:
All districts had a higher PCI than the national average in 2022-23.
Rangareddy district had the highest PCI (Rs. 9,46,862).
Employment Indicators:
Higher LFPR and WPR in Telangana compared to national averages.
Significant female workforce participation, especially in rural areas.
Unemployment and Employment Dynamics in Telangana
1. Unemployment Rate (UR)
Definition:
The percentage of unemployed persons in the labour force actively seeking work.
Trends in Telangana vs. National:
Higher labour force participation rates (LFPR) compared to national average.
Higher unemployment rates across both rural and urban areas, and among both genders.
2022-23 Data:
Working-age population (15-59 years): Higher UR than India.
Rural UR: Higher by 0.5 percentage points than the national average.
Urban UR: Higher by 2.4 percentage points than the national average.
Male UR: Higher by 1.3 percentage points than India.
Female UR: Higher by 0.8 percentage points than India (Urban: 1.9 percentage points higher, Rural: 0.2 percentage points higher).
Year-on-Year Change:
2022-23: Telangana's UR increased by 0.1%.
Male UR increased by 0.8 percentage points.
Female UR declined by 1.0 percentage points.
Urban UR increased by 0.4 percentage points (Jan-Mar 2023 to Jan-Mar 2024).
2. Employment in Major Sectors of the Economy
Sectoral Employment:
Agriculture: Largest employer, providing livelihoods to 47.3% of working adults.
Service Sector: Employs 33% of working adults.
Industrial Sector: Employs 19.7% of working adults.
3. Terms of Employment
Improvements Over Time (2021-23):
Regular Wage/Salaried Employees with Written Contracts:
Increased from 45.1% to 59.2%.
Eligibility for Paid Leave:
Increased from 59.7% to 67.6%.
Social Security Benefits:
Increased from 53.3% to 61.1%.
4. Way Forward
Economic Performance:
Telangana outperforms many Indian states in economic indicators like Per Capita Income and GSDP growth.
Government plans to undertake sector-specific initiatives to improve the state’s business environment.
Key Points for Public Service Exams
Higher Unemployment Rates:
Telangana's UR higher than national average in both rural and urban areas, and among both genders.
Labour Force Participation:
Higher LFPR in Telangana compared to national average.
Employment in Major Sectors:
Agriculture: 47.3%
Service Sector: 33%
Industrial Sector: 19.7%
Improved Employment Terms:
Increase in regular wage/salaried employees with written contracts, eligibility for paid leave, and access to social security benefits.
Economic Performance:
Outperformance in Per Capita Income and GSDP growth.
Future sector-specific initiatives for business environment improvement.
Public Finance Overview for 2024-25
1. Total Expenditure
Budget Estimates for 2024-25:
Rs. 2,75,891 crore
Increase of 22.8% from Rs. 2,24,625 crore in 2023-24 (Revised Estimates)
2. Capital Expenditure
Allocation for 2024-25:
Rs. 29,669 crore
Increase of 22.7% from Rs. 24,178 crore in 2023-24 (Revised Estimates)
3. Revenue Receipts
Projected for 2024-25:
Rs. 2,05,602 crore
Increase of 15.4% from Rs. 1,78,173 crore in 2023-24 (Revised Estimates)
4. Tax Revenue
Expected for 2024-25:
Rs. 1,38,228 crore
Increase of 16.9% from Rs. 1,18,195 crore in 2023-24 (Revised Estimates)
5. Abhaya Hastam (Six Guarantees) Initiative
Total Allocation:
Rs. 53,196 crore for 2024-25
Major Allocations:
Panchayat Raj and Rural Development: Rs. 40,080 crore
Agriculture: Rs. 19,746 crore
Irrigation: Rs. 28,024 crore
Education: Rs. 21,389 crore
Health Sector: Rs. 11,500 crore
6. Welfare Allocations
SC Welfare: Rs. 21,874 crore
ST Welfare: Rs. 13,313 crore
BC Welfare: Rs. 8,000 crore
Minorities Welfare: Rs. 2,262 crore
Key Points for Public Service Exams
Total Expenditure:
Budget estimate for 2024-25: Rs. 2,75,891 crore (22.8% increase from 2023-24)
Capital Expenditure:
Allocation: Rs. 29,669 crore (22.7% increase from 2023-24)
Revenue Receipts:
Projected: Rs. 2,05,602 crore (15.4% increase from 2023-24)
Tax Revenue:
Expected: Rs. 1,38,228 crore (16.9% increase from 2023-24)
Abhaya Hastam (Six Guarantees) Initiative:
Total allocation: Rs. 53,196 crore
Major allocations: Panchayat Raj and Rural Development (Rs. 40,080 crore), Agriculture (Rs. 19,746 crore), Irrigation (Rs. 28,024 crore), Education (Rs. 21,389 crore), Health (Rs. 11,500 crore)
Welfare Allocations:
SC Welfare: Rs. 21,874 crore
ST Welfare: Rs. 13,313 crore
BC Welfare: Rs. 8,000 crore
Minorities Welfare: Rs. 2,262 crore
Telangana Public Finance: 2024-25
1. Strategic Vision for Resource Mobilization
Maximizing Funding:
From central government schemes.
Central Government's vote-on-account budget introduced on February 1, 2024.
Vote-on-Account Budget:
Released by Telangana on February 10, 2024.
Full budget to follow after the Central Government's comprehensive budget.
2. Emergence as a Hub
Hyderabad’s Development:
Pharmaceuticals
Defence
Information Technology (IT)
3. Fiscal Challenges
Debt Accumulation:
Total debt soared from Rs. 72,658 crore in 2014-15 to Rs. 6,71,757 crore as of December 1, 2023.
Fiscal strain and impact on debt-servicing capabilities.
Expenditure Breakdown:
34% of revenue receipts for debt servicing in 2023-24.
35% for salaries and pensions.
Minimal fiscal space for welfare programs and economic development initiatives.
4. Commitment to Responsible Governance
Resource Allocation:
Focus on uplifting the impoverished.
Cutting unnecessary spending.
Six Guarantees:
Prioritizing implementation despite fiscal challenges.
Telangana Vote-on-account BE 2024-25 Summary
1. Budget Focus
Economic Growth and Fiscal Prudence
Comprehensive Development
Upliftment of Weaker Sections:
Mahalakshmi, Gruha Jyothi, Indiramma Houses, Yuva Vikasam, and Cheyutha guarantees.
Agricultural and Urban Development:
Boosting agricultural production.
Focus on urban development through planned industrialization.
2. Financial Overview
Revenue Receipts:
Projected: Rs. 2,05,602 crore (15.4% increase from 2023-24)
Capital Receipts:
Projected: Rs. 68,585 crore (45.4% increase from 2023-24)
Total Receipts:
Projected: Rs. 2,74,187 crore (21.7% increase from 2023-24)
Revenue Expenditure:
Projected: Rs. 2,01,178 crore (18.9% increase from 2023-24)
Capital Expenditure:
Projected: Rs. 29,669 crore (22.7% increase from 2023-24)
Loans and Advances:
Provision: Rs. 28,043 crore (50% increase from 2023-24)
Capital Disbursements:
Projected: Rs. 17,001 crore (34.9% increase from 2023-24)
Total Expenditure:
Estimated: Rs. 2,75,891 crore (22.8% rise from 2023-24)
Revenue Surplus:
Projected to decrease to Rs. 4,424 crore (51.0% reduction from 2023-24)
Fiscal Deficit:
Anticipated to widen to Rs. 53,228 crore (57.5% increase from 2023-24)
Key Points for Public Service Exams
Vote-on-Account Budget:
Released on February 10, 2024.
Total Debt:
Increased to Rs. 6,71,757 crore by December 1, 2023.
Revenue and Capital Receipts:
Revenue Receipts: Rs. 2,05,602 crore.
Capital Receipts: Rs. 68,585 crore.
Total Receipts and Expenditure:
Total Receipts: Rs. 2,74,187 crore.
Total Expenditure: Rs. 2,75,891 crore.
Expenditure Breakdown:
Revenue Expenditure: Rs. 2,01,178 crore.
Capital Expenditure: Rs. 29,669 crore.
Loans and Advances: Rs. 28,043 crore.
Capital Disbursements: Rs. 17,001 crore.
Fiscal Indicators:
Revenue Surplus: Rs. 4,424 crore.
Fiscal Deficit: Rs. 53,228 crore.
Public Finance in Telangana: 2024-25 Overview
1. Revenue Composition
Projected Revenue Receipts (2024-25 BE):
Rs. 2,05,602 crore (15.4% increase from 2023-24 RE)
Tax Revenue:
Expected: Rs. 1,38,228 crore
2. Expenditure on Key Sectors
Agriculture:
Allocation: Rs. 19,746 crore
Education:
Allocation: Rs. 21,389 crore
Medical and Health:
Allocation: Rs. 11,500 crore
Irrigation:
Allocation: Rs. 28,024 crore
Transco and Discoms:
Allocation: Rs. 16,825 crore
Panchayat Raj and Rural Development:
Allocation: Rs. 40,080 crore
Municipal Administration:
Allocation: Rs. 11,692 crore
SC Welfare:
Allocation: Rs. 21,874 crore
ST Welfare:
Allocation: Rs. 13,313 crore
BC Welfare:
Allocation: Rs. 8,000 crore
Minorities Welfare:
Allocation: Rs. 2,262 crore
3. Expenditure on Flagship Schemes
Abhaya Hastam (Six Guarantees) Initiative:
Total Allocation: Rs. 53,196 crore
Focus on six transformative schemes for social welfare and economic development.
4. Fiscal Deficit and Debt
Total Expenditure (2024-25 BE):
Rs. 2,75,891 crore (22.8% increase from 2023-24 RE)
Fiscal Deficit:
Rs. 53,228 crore (57.5% increase from 2023-24 RE)
5. Loans and Borrowings (2024-25 BE)
Open Market Loans:
Expected to rise from Rs. 40,616 crore (2023-24 RE) to Rs. 59,625 crore (46.8% increase)
Government of India Loans:
Expected to increase by 160% to Rs. 3,900 crore
6. Revenue
Components:
State’s Own Tax Revenue
Share of Central Taxes
Non-tax Revenue
Grants from the Central Government
Key Points for Public Service Exams
Revenue Receipts:
Projected: Rs. 2,05,602 crore (2024-25 BE)
15.4% increase from 2023-24
Tax Revenue:
Expected: Rs. 1,38,228 crore (2024-25 BE)
Expenditure on Key Sectors:
Agriculture: Rs. 19,746 crore
Education: Rs. 21,389 crore
Medical and Health: Rs. 11,500 crore
Irrigation: Rs. 28,024 crore
Transco and Discoms: Rs. 16,825 crore
Panchayat Raj and Rural Development: Rs. 40,080 crore
Municipal Administration: Rs. 11,692 crore
SC Welfare: Rs. 21,874 crore
ST Welfare: Rs. 13,313 crore
BC Welfare: Rs. 8,000 crore
Minorities Welfare: Rs. 2,262 crore
Abhaya Hastam Initiative:
Total Allocation: Rs. 53,196 crore
Fiscal Indicators:
Total Expenditure: Rs. 2,75,891 crore
Fiscal Deficit: Rs. 53,228 crore
Loans and Borrowings:
Open Market Loans: Rs. 59,625 crore
Government of India Loans: Rs. 3,900 crore
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