Telangana Budget Analysis

2022-23
The Finance Minister of Telangana, Mr. T. Harish Rao, presented the Budget for the state for the financial year
2022-23 on March 7, 2022.
Budget Highlights
▪ The Gross State Domestic Product (GSDP) of the state for 2022-23 (at current prices) is projected to be
Rs 13.04 lakh crore. This is a growth of 13% over the revised estimate of GSDP for 2021-22 (Rs 11.54
lakh crore). In 2021-22, GSDP is estimated to grow at 19.1% over the previous year (at current prices).
▪ Expenditure (excluding debt repayment) in 2022-23 is estimated to be Rs 2,45,257 crore, a 22% increase
over the revised estimates of 2021-22 (Rs 2,00,943 crore). In addition, debt of Rs 11,702 crore will be
repaid by the state in 2022-23. In 2021-22, expenditure (excluding debt repayment) is estimated to be 9%
lower than the budget estimate.
▪ Receipts (excluding borrowings) for 2022-23 are estimated to be Rs 1,93,089 crore, an increase of 24%
over the revised estimates of 2021-22 (Rs 1,56,177 crore). In 2021-22, receipts (excluding borrowings) are
estimated to be 11% lower than the budget estimate (Rs 1,76,177 crore).
▪ Fiscal deficit for 2022-23 is targeted at Rs 52,167 crore (4% of GSDP). In 2021-22, as per the revised
estimates, fiscal deficit is expected to be 3.88% of GSDP, lower than the budget estimate of 3.94% of GSDP.
▪ Revenue surplus for 2022-23 is estimated to be 0.29% of the GSDP (Rs 3,755 crore). In 2021-22, the state is
estimated to observe a revenue surplus of 0.38% of GSDP, lower than the budget estimate of 0.58% of GSDP.
Policy Highlights
▪ Education: The state’s first women university will be established. An outlay of Rs 100 crore has been
proposed for the same. Over the next two years, medical colleges will be established in all districts.
▪ Healthcare: Super specialty hospitals will be established in all four parts of Hyderabad. These institutions
will be collectively known as Telangana Institutions of Medical Sciences. To improve sanitation in
hospitals, wages paid to sanitary workers will be increased.
▪ Social security: From next financial year, the age limit for Aasara pension (old age pension scheme) will
be reduced from 65 years to 57 years.

Figure 1: Growth in GSDP and sectors in

Telangana’s Economy Telangana at constant (2011-12) prices
▪ GSDP: Telangana’s GSDP (at constant prices) is 19.0%
20%
estimated to grow at 11.2% in 2021-22. In
12.2%

11.6%

comparison, national GDP is estimated to grow at

11.2%

15%
8.9% in 2021-22. In 2021-22, the manufacturing
and services sectors of Telangana are estimated to 10%
grow at 12.2% and 11.6%, respectively. 5.5% 5.0%
3.2%

▪ Sectors: In 2021-22, at current prices, agriculture, 5%

0.2%

manufacturing, and services sectors are estimated

0%
to contribute 21%, 17%, and 61% of the economy,
-1.1%

respectively.
-3.5%

-5% -3.0%
▪ Per capita GSDP: The per capita GSDP of
Telangana in 2021-22 (at current prices) is
estimated to be Rs 3,05,389; 18% higher than the
corresponding figure in 2020-21 (Rs 2,57,894). In
comparison, the per capita GDP at the national 2019-20 2020-21 2021-22
Note: These numbers are as per constant (2011-12) prices which
level is estimated to be Rs 1,72,761 (at current
implies that the growth rate is adjusted for inflation.
prices) in 2021-22. Sources: Ministry of Statistics and Programme Implementation;
PRS.

Shashank Srivastava
[email protected] March 9, 2022
PRS Legislative Research ◼ Institute for Policy Research Studies
3rd Floor, Gandharva Mahavidyalaya ◼ 212, Deen Dayal Upadhyaya Marg ◼ New Delhi – 110002
Tel: (011) 2323 4801, 4343 4035 ◼ www.prsindia.org
 Telangana Budget Analysis 2022-23 PRS Legislative Research

Budget Estimates for 2022-23

▪ Expenditure (excluding debt repayment) in 2022-23 is targeted at Rs 2,45,257 crore. This is an increase
of 22% over the revised estimate of 2021-22 (Rs 2,00,943 crore). This expenditure is proposed to be met
through receipts (excluding borrowings) of Rs 1,93,089 crore and net borrowings of Rs 47,970 crore.
Receipts (excluding borrowings) for 2022-23 are expected to register an increase of 24% over the revised
estimate of 2021-22. In 2021-22, receipts are estimated to be 11% lower than the budget estimates.
▪ In 2022-23, the state is estimated to observe a revenue surplus of Rs 3,755 crore, which is 0.29% of its
GSDP. In comparison, in 2021-22, the state is expected to observe a revenue surplus of 0.38% of GSDP as
per the revised estimates (Rs 4,395 crore).
▪ Fiscal deficit in 2022-23 is estimated to be 4% of GSDP which is equal to the limit of 4% of GSDP
permitted by the central government as per the Union Budget 2022-23 (of which, 0.50% of GSDP will be
made available upon undertaking power sector reforms). In 2021-22, the state has estimated a fiscal deficit
of 3.88% of GSDP, lower than the limit of 4.5% of GSDP permitted by the central government (of which,
0.50% of GSDP becomes available upon undertaking power sector reforms).
Table 1: Budget 2022-23 - Key figures (in Rs crore)
% change from % change from
2020-21 2021-22 2021-22 2022-23
Items BE 2021-22 to RE 2021-22 to
Actuals Budgeted Revised Budgeted
RE 2021-22 BE 2022-23
Total Expenditure 2,27,001 2,30,826 2,10,083 -9% 2,56,959 22%
(-) Repayment of debt 76,991 9,139 9,139 0% 11,702 28%
Net Expenditure (E) 1,50,011 2,21,687 2,00,943 -9% 2,45,257 22%
Total Receipts 2,17,559 2,25,477 2,05,477 -9% 2,52,761 23%
(-) Borrowings 1,16,586 49,300 49,300 0% 59,672 21%
Net Receipts (R) 1,00,973 1,76,177 1,56,177 -11% 1,93,089 24%
Fiscal Deficit (E-R) 49,038 45,510 44,766 -2% 52,167 17%
as % of GSDP 5.06% 3.94% 3.88% 4.00%
Revenue Balance* -22,298 6,743 4,395 -35% 3,755 -15%
as % of GSDP -2.30% 0.58% 0.38% 0.29%
Primary Deficit 32,196 27,925 27,182 -3% 33,255 22%
as % of GSDP 3.32% 2.42% 2.35% 2.55%
Note: *Negative sign indicates a deficit, positive sign indicates a surplus. BE is Budget Estimates; RE is Revised Estimates. Total
expenditure in 2020-21 includes eight crore rupees towards inter-state settlement.
Sources: Telangana Budget Documents 2022-23; Telangana Economic Survey 2021-22; PRS.

Expenditure in 2022-23
▪ Revenue expenditure in 2022-23 is estimated to be Rs Actual Expenditure in 2020-21
1,89,275 crore, which is an increase of 25% over the In 2020-21, the actual expenditure (excluding debt
revised estimate of 2021-22 (Rs 1,51,732 crore). This repayment) by the state was Rs 1,50,003 crore, 15% less
expenditure includes the payment of salaries, pensions, than the budget estimate of Rs 1,76,393 crore. While
interest, and subsidies. In 2021-22, as per the revised receipts (excluding borrowings) were Rs 42,229 crore
estimates, revenue expenditure is estimated to be 10% less than the budget estimate, net borrowings were Rs
lower than the budget estimate. 10,617 crore higher. The state ended up observing a
fiscal deficit of 5.06% of GSDP as against the budget
▪ Capital outlay in 2022-23 is estimated to be Rs 29,728 estimate of 3% of GSDP. Note that in 2020-21, the
crore, which is an increase of 15% over the revised centre allowed states to increase their fiscal deficit from
estimate of 2021-22. Capital outlay comprises 3% of GSDP to 4% of GSDP. Another 1% of GSDP was
expenditure towards creation of assets. This includes available for states implementing four specified reforms.
expenditure on building schools, hospitals, and roads and Actual spending in sectors such as Housing, Urban
development, and Agriculture and allied activities was
bridges. In 2021-22, capital outlay is estimated to be
94%, 71%, and 30% less than budget estimates,
11% lower than the budget estimate. respectively. See Annexure 2 for details.
Table 2: Expenditure Budget 2022-23 (in Rs crore)
% change from % change from RE
2020-21 2021-22 2021-22 2022-23
Items BE 2021-22 to 2021-22 to BE
Actuals Budgeted Revised Budgeted
RE 2021-22 2022-23
Revenue Expenditure 1,23,212 1,69,383 1,51,732 -10% 1,89,275 25%
Capital Outlay 15,922 29,047 25,955 -11% 29,728 15%
Loans given by the state 10,868 23,256 23,256 0% 26,253 13%
Net Expenditure 1,50,003 2,21,687 2,00,943 -9% 2,45,257 22%
Sources: Telangana Budget Documents 2022-23; PRS.

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 Telangana Budget Analysis 2022-23 PRS Legislative Research

Committed expenditure: Committed expenditure of a state typically includes expenditure on payment of

salaries, pensions, and interest. Allocation of a large portion of the budget towards committed expenditure items
limits the state’s flexibility to decide on other expenditure priorities such as developmental schemes and capital
outlay. Estimation for allocation towards salaries in 2022-23 is not available. As per revised estimates of 2021-
22, Telangana is estimated to spend Rs 54,895 crore on committed expenditure items, which is 35% of its
revenue receipts. This comprises spending on salaries (14% of revenue receipts), pension (6%), and interest
payments (9%). On average, states spend 55% of their revenue receipts on committed expenditure (as per 2021-
22 budget estimates). In 2022-23, the state is estimated to spend 6% of its revenue receipts on pension and 10%
on interest payments.
Table 3: Committed Expenditure in 2022-23 (in Rs crore)
% change from % change from
2020-21 2021-22 2021-22 2022-23
Heads BE 2021-22 to RE 2021-22 to
Actuals Budgeted Revised Budgeted
RE 2021-22 BE 2022-23
Salaries 25,107 - 26,479
Pension 13,599 10,831 10,831 0% 11,385 5%
Interest 16,841 17,584 17,584 0% 18,912 8%
Total Committed
55,548 - 54,895 - - -
Expenditure
Sources: Telangana Budget Documents 2022-23; PRS.

Sector-wise expenditure: The sectors listed below account for 69% of the total expenditure on sectors by the
state in 2022-23. A comparison of Telangana’s expenditure on the key sectors with that by other states is shown
in Annexure 1.
Table 4: Sector-wise expenditure under Telangana Budget 2022-23 (in Rs crore)
% change
2020-21 2021-22 2021-22 2022-23 from RE 2021- Budget Provisions
Sector
Actuals Budgeted Revised Budgeted 22 to BE 2022- 2022-23 BE
23
Welfare of SC, ▪ Dalit Bandhu scheme has been allocated Rs
ST, OBC, and 9,078 15,729 17,637 31,427 78% 17,700 crore.
Minorities
▪ Rs 14,800 crore has been allocated to Rythu
Agriculture and Bandhu Scheme.
17,808 26,822 23,312 27,228 17%
allied activities ▪ Rs 4,000 crore has been allocated to debt
relief to farmers
Social Welfare ▪ Rs 9,947 crore has been allocated towards the
15,957 18,997 17,872 18,602 4% Aasara pensions.
and Nutrition
▪ Rs 4,868 crore and Rs 4,434 crore have been
Education, allocated as assistance to local bodies for
Sports, Arts, 12,744 13,498 13,509 16,043 19% primary education and secondary education,
and Culture respectively.
▪ Rs 822 crore has been allocated towards the
National Health Mission.
Health and
6,005 5,868 5,868 10,954 87% ▪ Rs 2,000 crore has been allocated towards
Family Welfare
construction of medical colleges and super
specialty hospitals.
Irrigation and ▪ Rs 9,958 crore has been allocated towards the
8,715 7,979 7,979 10,946 37% capital outlay on irrigation and flood control.
Flood Control
▪ Rs 7,665 crore has been allocated towards
assistance to the Transmission Corporation of
Energy 9,984 10,663 10,663 10,625 0% Telangana Limited for subsidy to agricultural
consumers.
▪ District police has been allocated Rs 3,864
Police 6,040 6,049 6,049 8,764 45% crore.
Rural ▪ Rs 1,460 crore has been allocated towards the
7,873 6,728 7,228 8,557 18% MGNREGS scheme.
Development

Roads and ▪ Rs 4,472 crore has been allocated towards the

1,587 5,187 5,187 7,089 37% capital outlay on roads and bridges.
Bridges
% of total
expenditure 69% 59% 65% 69% 6%
on all sectors
Sources: Telangana Budget Documents 2022-23; PRS.

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 Telangana Budget Analysis 2022-23 PRS Legislative Research

Receipts in 2022-23
▪ Total revenue receipts for 2022-23 are estimated to be Rs 1,93,029 crore, an increase of 24% over the
revised estimate of 2021-22. Of this, Rs 1,33,634 crore (69%) will be raised by the state through its own
resources (tax and non-tax revenue), and Rs 59,396 crore (31%) will come from the centre. Resources
from the centre will be in the form of state’s share in central taxes (10% of revenue receipts) and grants
(21% of revenue receipts).
▪ Devolution: In 2022-23, the state estimates to receive Rs 18,394 crore in the form of share in central taxes,
an increase of 31% over the revised estimates of 2021-22.
▪ Grants from central government: Grants from the government are estimated to increase by 43% over the
revised estimates of 2021-22. Note that 2021-22 revised estimates are 85% more than the 2020-21 actual
figures for grants from central government. This is mainly on account of funds estimated as “Special
Package and Additional Central Assistants” grant. In 2022-23, the state has estimated to receive Rs 25,555
crore in the form of these grants. In 2021-22, the state has estimate to receive Rs 15,105 crore on account
of this special package grant.
▪ State’s own tax revenue: In 2022-23, total own tax revenue of the state is estimated to be Rs 1,08,212
crore, an increase of 16% over the revised estimate of 2021-22. State’s own tax revenue as a percentage of
GSDP is estimated to increase from 6.8% of GSDP in 2020-21 (as per actuals) to 8.2% of GSDP in 2022-23
(as per budget estimate). This implies that tax revenue is estimated to grow at a higher rate than GSDP.
▪ State’s own non-tax revenue: In 2022-23, the state is estimated to earn Rs 25,422 crore in the form of
state’s own non-tax revenue, a 13% increase over the revised estimates of 2021-22. Of this, Rs 15,500
crore is estimated to come from sale of land and property. In 2021-22, state’s own non-tax revenue is
estimated to register a decrease of 33% over the budget estimate. In 2021-22, the state had estimated non-
tax revenue of Rs 5,002 crore from the housing sector at the budget stage, which has been revised down to
Rs 1.73 lakh.
Table 5: Break-up of the state government’s receipts (in Rs crore)
% change from % change from
2020-21 2021-22 2021-22 2022-23
Items BE 2021-22 to RE 2021-22 to
Actuals Budgeted Revised Budgeted
RE 2021-22 BE 2022-23
State's Own Tax 66,650 92,910 92,910 0% 1,08,212 16%
State's Own Non-Tax 6,101 30,557 20,557 -33% 25,422 24%
Share in Central Taxes 12,692 13,990 13,990 0% 18,394 31%
Grants from Centre 15,471 38,669 28,669 -26% 41,002 43%
Revenue Receipts 1,00,914 1,76,127 1,56,127 -11% 1,93,029 24%
Non-debt Capital Receipts 58 50 50 0% 60 20%
Net Receipts 1,00,973 1,76,177 1,56,177 -11% 1,93,089 24%
Note: BE is Budget Estimates; RE is Revised Estimates.
Sources: Telangana Budget Documents 2022-23; PRS.
▪ In 2022-23, SGST is estimated to be the largest source of own tax revenue (33%). SGST revenue in 2022-23 is
estimated at Rs 36,203 crore, which is a 17% increase over the revised estimates of 2021-22. In 2021-22 as per
revised estimates, SGST revenue is estimated to be same as the budget estimate. While the budget has not
estimated a back-to-back loan in-lieu of GST compensation in 2021-22, as per Union Ministry of Finance,
Telangana has received Rs 2,380 crore as GST compensation loan in 2020-21 and Rs 4,569 crore in 2021-22.
▪ In 2022-23, revenue from both sales tax/VAT and stamp duty and registration fees is expected to increase by
25% over revised estimates of 2021-22. Sales tax/VAT is the second largest source of own tax revenue after
SGST in 2022-23 (30% of own tax revenue).
Table 6: Major sources of state’s own-tax revenue (in Rs crore)
% change % change
2020-21 2021-22 2021-22 from BE 2022-23 from RE
Head
Actuals Budgeted Revised 2021-22 to Budgeted 2021-22 to
RE 2021-22 BE 2022-23
State GST 22,190 31,000 31,000 0% 36,203 17%
Sales Tax/ VAT 20,904 26,500 26,500 0% 33,000 25%
State Excise 14,370 17,000 17,000 0% 17,500 3%
Stamp Duty and Registration Fees 5,243 12,500 12,500 0% 15,600 25%
Taxes on Vehicles 3,338 5,000 5,000 0% 4,953 -1%
Land Revenue 1 6 6 0% 7 6%
Taxes and Duties on Electricity 20 30 30 0% 32 5%
GST Compensation Grants - - - - - -
GST Compensation Loans 2,380 - - - - -
Sources: Telangana Budget Documents 2022-23; PRS.

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 Telangana Budget Analysis 2022-23 PRS Legislative Research

Deficits and Debt Targets for 2022-23

The Telangana Fiscal Responsibility and Budget Management (FRBM) Act, 2005 provides annual targets to
progressively reduce the outstanding liabilities, revenue deficit, and fiscal deficit of the state government.
Revenue Balance: It is the difference of revenue expenditure and revenue receipts. A revenue deficit implies that
the government needs to borrow to finance its expenses which do not increase its assets or reduces its liabilities. In
2022-23, Telangana is estimated to observe a revenue surplus of Rs 3,755 crore, which is 0.29% of the GSDP.
According to revised estimates, Telangana is expected to have a revenue surplus of Rs 4,395 crore (0.38% GSDP) in
2021-22. In 2020-21, the state observed a revenue deficit of Rs 22,298 crore (2.30% of GSDP).
Fiscal deficit: It is the excess of total expenditure over total receipts. This gap is filled by borrowings by the
government and leads to an increase in total liabilities of the state government. In 2022-23, the fiscal deficit is
estimated to be Rs 52,167 crore (4% of GSDP). It is equal to the limit of 4% of GSDP permitted by the central
government in 2022-23 as per the Union Budget (of which, 0.5% of GSDP will be made available upon
undertaking power sector reforms). As per the revised estimates, in 2021-22, the fiscal deficit of the state is
expected to be 3.88% of GSDP, which is less than the budget estimate of 3.94% of GSDP. It is within the 4.5%
limit permitted by the central government for 2021-22 (of which, 0.5% of GSDP becomes available upon
undertaking power sector reforms). As per the FRBM statements presented along with the budget, the state’s
fiscal deficit is targeted at 3.50% of GSDP in 2023-24 and 2024-25.
For states, the 15th Finance Commission recommended the fiscal deficit limit (as % of GSDP) of: (i) 4% in
2021-22, (ii) 3.5% in 2022-23, and (iii) 3% during 2023-26. Further, extra annual borrowing worth 0.5% of
GSDP will be allowed to states for four years (2021-25) upon undertaking power sector reforms. These reforms
include Direct Benefit Transfer to farmers, reduction in technical and commercial losses of discoms, and
reduction in revenue gap. In his budget speech, the Finance Minister stated that Telangana will not be
undertaking reforms in the power sector as required by the central government for additional borrowing.
Outstanding liabilities: Outstanding liabilities is the accumulation of total borrowings at the end of a financial
year, it also includes any liabilities on public account. Outstanding liabilities are set to rise from 21.32% of
GSDP in 2019-20 to 25.29% of GSDP in 2022-23.

Figure 2: Revenue and Fiscal Balance (% of Figure 3: Outstanding Liabilities (% of GSDP)

GSDP) 30%
3% 25.17% 24.69% 25.29% 25.0% 25.0%

0.38% 0.29% 21.32%

0% 20%
-0.65%
-3% -2.30%
-3.29% 10%
-3.88% -4.00% -3.50% -3.50%
-6% -5.06%
2023-24*

2024-25*
2019-20

2020-21

2022-23 BE
2021-22 RE

0%

Revenue Balance Fiscal Balance

Note: RE: Revised Estimates; BE: Budget Estimates. A positive
figure means a surplus, a negative figure means a deficit. *Figures Note: RE: Revised Estimates; BE: Budget Estimates. *Figures
for 2023-24 and 2024-25 are projections. for 2023-24 and 2024-25 are projections.
Sources: Telangana Budget Documents 2022-23; PRS. Sources: Telangana Budget Documents 2022-23; PRS.

Outstanding Government Guarantees: Outstanding liabilities of states do not include a few other liabilities
that are contingent in nature, which states may have to honour in certain cases. State governments guarantee the
borrowings of State Public Sector Enterprises (SPSEs) from financial institutions. At the end of 2021-22, the
outstanding guarantee of the state is estimated to be 11.7% of GSDP, higher than 10.8% of GSDP at the end of
2020-21. Note that as of 2019-20, outstanding guarantee given by states was around 3.3% of their GSDP. The
state’s FRBM Act stipulates to limit the amount of annual incremental risk weighted guarantees to 200% of the
total revenue receipts in the year preceding the current year. Telangana’s guarantees are within these limits.
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 Telangana Budget Analysis 2022-23 PRS Legislative Research

Annexure 1: Comparison of states’ expenditure on key sectors

The graphs below compare Telangana’s expenditure on six key sectors as a proportion of its total expenditure on
all sectors. The average for a sector indicates the average expenditure in that sector by 30 states (including
Telangana) as per their budget estimates of 2021-22.1
▪ Education: Telangana has allocated 7.3% of its total expenditure for education in 2022-23. This is lower
than the average allocation (15.2%) for education by all states (as per 2021-22 Budget Estimates).
▪ Health: Telangana has allocated 5.0% of its total expenditure on health, which is lower than the average
allocation for health by states (6%).
▪ Agriculture: The state has allocated 12.4% of its total expenditure towards agriculture and allied activities.
This is twice than the average allocation for agriculture by states (6.2%).
▪ Rural development: Telangana has allocated 3.9% of its expenditure on rural development. This is lower
than the average allocation for rural development by states (5.7%).
▪ Roads and bridges: Telangana has allocated 3.2% of its total expenditure on roads and bridges, which is
lower than the average allocation by states (4.7%).
▪ Welfare of SC, ST, OBC, and Minorities: Telangana has allocated 14.4% of its total expenditure on the
same, which is significantly higher than the average expenditure by states (2.9%).

Spending on education as a Spending on health as a % of Spending on agriculture as

% of total expenditure total expenditure a % of total expenditure
20% 8% 13.5%
15.2% 6.0% 12.4%
15% 6% 5.0% 16% 12.8% 13.1%
4.3%
9.2% 3.0% 3.3% 12%
10% 6.8% 7.6% 7.3% 4% 6.2%
8%
5% 2% 4%
0% 0%
0%
2021-22 (RE)
2020-21

2021-22 (BE)

Average of all states

2022-23 (BE)

2020-21

2021-22 (RE)
2021-22 (BE)

2022-23 (BE)

states (2021-22 BE)

2020-21

2021-22 (RE)
2021-22 (BE)

2022-23 (BE)
Average of all states

Average of all
(2021-22 BE)
(2021-22 BE)

Spending on rural Spending on roads and Spending on Welfare of SC,

development as a % of total bridges as a % of total ST, OBC, and Minorities as
expenditure expenditure a % of total expenditure
5.7% 5.7% 14.4%
6% 6% 4.7% 16%
4.1% 3.9%
4% 3.4% 3.2% 12%
4% 2.6% 2.9% 9.9%
7.9%
2% 2% 1.1% 8% 6.5%
0% 0% 2.9%
4%
2020-21

2021-22 (RE)
2021-22 (BE)

2022-23 (BE)

Average of all states

2020-21

2021-22 (RE)
2021-22 (BE)

2022-23 (BE)

Average of all states

(2021-22 BE)

0%
(2021-22 BE)

2020-21

2021-22 (RE)
2021-22 (BE)

2022-23 (BE)
Average of all states
(2021-22 BE)

Note: BE: Budget Estimates; RE: Revised Estimates; 2020-21, 2021-22 (BE), 2021-22 (RE), and 2022-23 (BE) figures are for Telangana.
Sources: Telangana Budget Documents 2022-23; various state budgets; PRS.

1
The 30 states include the Union Territory of Delhi and Union Territory of Jammu and Kashmir.

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 Telangana Budget Analysis 2022-23 PRS Legislative Research

Annexure 2: Comparison of 2020-21 Budget Estimates and Actuals

The following tables compare the actuals of 2020-21 with budget estimates for that year.
Table 7: Overview of Receipts and Expenditure (in Rs crore)
Particular 2020-21 BE 2020-21 Actuals % change from BE to Actuals
Net Receipts (1+2) 1,43,202 1,00,973 -29%
1. Revenue Receipts (a+b+c+d) 1,43,152 1,00,914 -30%
a. Own Tax Revenue 85,300 66,650 -22%
b. Own Non-Tax Revenue 30,600 6,101 -80%
c. Share in central taxes 16,727 12,692 -24%
d. Grants-in-aid from the Centre 10,525 15,471 47%
Of which GST compensation grants 0 0
2. Non-Debt Capital Receipts 50 58 17%
3. Borrowings 35,500 1,16,586 228%
Of which GST compensation loan 0 2,380 -
Net Expenditure (4+5+6) 1,76,393 1,50,003 -15%
4. Revenue Expenditure 1,38,670 1,23,212 -11%
5. Capital Outlay 22,061 15,922 -28%
6. Loans and Advances 15,662 10,868 -31%
7. Debt Repayment 6,521 76,991 1081%
Revenue Balance 4,482 -22,298 -597%
Revenue Balance (as % of GSDP) 0.41% -2.30%
Fiscal Deficit 33,191 49,038 48%
Fiscal Deficit (as % of GSDP) 3.00% 5.06%
Note: A negative revenue balance indicates a deficit. BE: Budget Estimates.
Sources: Telangana Budget Documents of various years; PRS.

Table 8: Key Components of State's Own Tax Revenue (in Rs crore)

Sector 2020-21 2020-21 % change from
BE Actuals BE to Actuals
Land Revenue 7 1 -93%
Stamps Duty and Registration Fees 10,000 5,243 -48%
Sales Tax/VAT 26,400 14,370 -46%
Taxes and Duties on Electricity 33 20 -38%
Taxes on Vehicles 4,300 3,338 -22%
SGST 27,600 22,190 -20%
State Excise Duty 16,000 20,904 31%
Note: BE: Budget Estimates.
Sources: Telangana Budget Documents of various years; PRS.

Table 9: Allocation towards Key Sectors (in Rs crore)

Sector 2020-21 BE 2020-21 Actuals % change from BE to Actuals
Housing 10,591 600 -94%
Urban Development 13,053 3,816 -71%
Agriculture and allied activities 25,305 17,808 -30%
Welfare of SC, ST, OBC, and
10,756 9,078 -16%
Minorities
Social Welfare and Nutrition 17,387 15,957 -8%
Energy 10,111 9,984 -1%
Water Supply and Sanitation 1,719 1,788 4%
Health and Family Welfare 5,666 6,005 6%
Education, Sports, Arts, and
11,897 12,744 7%
Culture
Police 5,461 6,040 11%
Transport 1,943 2,209 14%
of which Roads and Bridges 1,314 1,587 21%
Rural Development 6,038 7,873 30%
Irrigation and Flood Control 4,704 8,715 85%
Note: BE: Budget Estimates.
Sources: Telangana Budget Documents of various years; PRS.

March 9, 2022 -7-