The State government on Tuesday presented the annual budget for the financial year 2020-21 with a total outlay of ₹2.24 lakh crore, which is 1.40% less than last year’s total outlay of ₹ 2.27 lakh crore.
The government has estimated revenue receipts at ₹ 1.61 lakh crore as against last fiscal’s revised estimate of (2019-20) ₹ 1.10 lakh crore. The revenue expenditure is estimated at ₹ 1.80 lakh crore for the current fiscal (2020-21) compared with ₹ 1.37 lakh crore in the financial year 2019-20.
Presenting the budget in the Assembly, Finance Minister Buggana Rajendranath Reddy said revenue expenditure is estimated at ₹1,80,392.65 crore. The capital expenditure, including loan repayments and other disbursements, is estimated at ₹ 44,396.54 crore.
“I would urge this House to revisit our definition of capital expenditure. Consider the fact that every single paisa spent on enhancing the capacity of our citizenry to improve their opportunities in life, is a spending on human capital — the central theme of this budget and the core philosophy of the manifesto,” he said.
COVID effect
The Minister said that the 2020-21 budget estimates entail on overall decrease of 1.4% over the 2019-20 budget estimates on account of major economic slowdown during the COVID-19 pandemic. The revenue deficit would be around ₹18,434 crore while the fiscal deficit would be around ₹ 48,295 crore. The decline in the transfer of Central taxes in 2019-20 and 2020-21, the reduced share in the divisible pool for the year 2020-21 and the precipitous decline of revenue realisation on account of the lockdown, further added to the financial distress, he said.
Stating that the government has the onerous responsibility of integrating fiscal reform priorities with the development of the State, Mr. Rajendranath Reddy said the government was implementing various schemes and programmes, including Jagananna Amma Vodi, Jagananna Vidya Deevena, Jagananna Vasathi Deevena, Manabadi Madu-Nedu, Gorumudda, Dr. YSR Aarogya Aasara, Kanti Velugu, Ryhtu Bharosa-PM Kisan, interest-free loans, Rythu Bharosa Kendralu (RBKs), YSR Matsyakara Bharosa, Pedalandiriki Illu, YSR Sampurna Poshana, and YSR pensions, etc.
The government has allocated ₹37,659 crore for direct benefit transfer schemes such as YSR Pension Kanuka, YSR Aasara, Amma Vodi, etc. The allocation for ST welfare is ₹1,840 crore and for SC welfare it is ₹7,525 crore. The allocation for Kapu welfare is ₹ 2,845 crore and ₹ 23,406 crore for BC welfare. The government allocated ₹1,998 crore for minority welfare. Similarly, the allocation to the agriculture sector stands at ₹11,891 crore and to the education sector at ₹ 22,604 crore. The allocation to the health sector is pegged at ₹11,419 crore.
