The State government has declared that the budget presented to the Assembly today was formulated on expectations that there would be significant improvement in Gross State Domestic Product of Telangana in the next financial year.
In his budget speech, Finance Minister T. Harish Rao said the Gross Domestic Product is estimated to contract by 8% in 2020-21 due to coronavirus. In Telangana, the growth of Gross State Domestic Product is likely to be 1.3% while that of GDP at current prices in 2020-21 is estimated to be at minus 3.8%.
With the availability of corona vaccine, the society is gradually recovering. The State economy is also on a gradual recovery path.
It is expected that there would be significant improvement in GSDP of the State with these developments in the next financial year.As per advance estimates, GSDP at current prices in 2020-21 is estimated at ₹ 9.78 lakh crore. With the adverse impact of corona and lockdown, the growth of GSDP declined significantly from 13.5% in 2019-20 to 1.3 per cent in 2020-21.
The national GDP growth declined from 7.8% to minus 3.8% in the same period.
Compared with the national GDP growth, State’s GSDP growth is much better. With lot of foresight, Chief Minister K. Chandrasekhar Rao took steps to stimulate the rural economy.
The State government was able to prevent any adverse impact of corona on rural economy due to these efforts. The per capita income of Telangana is estimated to increase by 0.6% to ₹2.27 lakh in 2020-21 while the per capita income of the country is estimated to decline by 4.8% to ₹ 1.27 lakh.
Thus, the per capita income of Telangana is higher than the country’s per capita income by ₹99,377.
Despite adverse conditions, the Telangana per capita income showed increase.
