Telangana State Budget 2014-15 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Telangana FY 2014-15
Telangana State Budget 2014-15 Budget at a Glance
Total Receipts
Rs 51,042 crore
(excl. borrowings)
Total Expenditure
Rs 62,306 crore
Fiscal Deficit
1.9%
Rs 9,410 crore
Capital Expenditure
Rs 11,633 crore
Tax Revenue
Rs 37,477 crore
Net to Centre
Interest Payments
Rs 5,227 crore
8% of expenditure
Telangana Revenue Receipts 2014-15
Own tax revenue vs non-tax revenue breakdown
Telangana Expenditure Breakdown 2014-15
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Telangana 2014-15
The fiscal deficit for Telangana in 2014-15 is 1.9% of GSDP (Rs 9,410 crore), reflecting the state's borrowing needs to fund development programmes.
States are expected to maintain fiscal deficit within 3% of GSDP as per the FRBM Act. Telangana is maintaining fiscal discipline close to the recommended limit.
Interest payments at Rs 5,227 crore consume 8.4% of total expenditure.
Telangana State Budget 2014-15 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 62,473 crore | 100% |
| 1. Revenue Receipts | Rs 51,042 crore | 81.7% |
| a. Own Tax Revenue | Rs 37,477 crore | 60.0% |
| b. Non-Tax Revenue | Rs 13,565 crore | 21.7% |
| B. Total Expenditure | Rs 62,306 crore | 100% |
| 1. Revenue Expenditure | Rs 50,673 crore | 81.3% |
| 2. Capital Expenditure | Rs 11,633 crore | 18.7% |
| of which: Interest Payments | Rs 5,227 crore | 8.4% |
| C. Fiscal Deficit | Rs 9,410 crore | 1.9% of GSDP |
Source: Telangana State Budget Documents via PRS India. All figures in Indian Rupees.
Telangana Budget 2014-15 Analysis & Highlights
Key Highlights
- Telangana's maiden budget, presented on 5 November 2014, proposed Rs 1,00,637 crore of expenditure for the truncated 10-month first year โ Rs 48,648 crore plan and Rs 51,989 crore non-plan outlay.
- Actual expenditure came in at Rs 62,306 crore โ only 61.9% of the budgeted amount, the lowest budget-utilisation ratio in Telangana's fiscal history per CAG Finance Accounts.
- Actual revenue receipts totalled Rs 51,042 crore (10.1% of GSDP): Rs 37,477 crore from tax revenue and Rs 13,565 crore from non-tax revenue and central grants.
- Taxes on commodities and services โ VAT, state excise and allied pre-GST levies โ alone yielded Rs 26,784 crore, anchored by Hyderabad's commercial base.
- The state closed its first year with a revenue surplus of Rs 369 crore, ahead of the Rs 301 crore surplus originally budgeted.
- Fiscal deficit was Rs 9,410 crore โ 1.9% of GSDP against the 3% FRBM ceiling, and far below the Rs 17,398 crore budgeted; the primary deficit stood at Rs 4,184 crore.
- Bifurcation under the AP Reorganisation Act left Telangana an opening outstanding debt of Rs 72,658 crore โ just 14.4% of GSDP, among the lowest of major Indian states.
- Interest payments consumed Rs 5,227 crore, about 10.2% of revenue receipts, and debt repayment absorbed another Rs 1,777 crore during the year.
- Capital expenditure, including loans given and repayments, totalled Rs 11,633 crore against revenue expenditure of Rs 50,673 crore โ an 18.7% capex share of total spending.
- Agriculture received Rs 7,099 crore, headlined by the Rs 4,250 crore first instalment of the crop loan waiver covering loans up to Rs 1 lakh per farmer, plus Rs 3,000 crore for free farm power.
- Irrigation schemes got Rs 6,500 crore plus Rs 2,000 crore for minor-tank restoration (the germ of Mission Kakatiya); the Rs 25,000 crore drinking water grid was seeded with Rs 2,000 crore.
- Welfare sub-plans dominated the plan side: Rs 7,579 crore for the Scheduled Castes sub-plan, Rs 4,559 crore for the Scheduled Tribes sub-plan and Rs 1,000 crore for SC land distribution.
- Telangana started statehood with a GSDP of Rs 5,05,849 crore (about 4.1% of India's GDP) and per capita income of Rs 1,24,104 โ well above the national average of Rs 86,647.
Compare Telangana Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2010-11 | 2011-12 | 2012-13 | 2013-14 | 2014-15 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | โ | Rs 62,306 crore |
| Revenue Receipts | โ | โ | โ | โ | Rs 51,042 crore |
| Capital Expenditure | โ | โ | โ | โ | Rs 11,633 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | โ | 1.9% |
| Own Tax Revenue | โ | โ | โ | โ | Rs 37,477 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Telangana State Budget 2014-15
The Telangana state budget is the annual financial plan presented in the state legislature. It covers all revenue receipts, expenditure allocations across departments, and fiscal deficit management. State budgets are critical because states handle key development areas including education, health, agriculture, and infrastructure.
Telangana Revenue Sources
State revenue comes from three sources: own tax revenue (state GST, stamp duty, excise, vehicle tax), non-tax revenue (fees, fines, interest), and transfers from the Centre (share of central taxes as per Finance Commission recommendations, plus grants-in-aid for specific schemes).
Fiscal Deficit and State Borrowing
Under the FRBM framework, states target a fiscal deficit of 3% of GSDP. States can borrow from the market via State Development Loans (SDLs), and the central government also provides loans. The RBI manages the borrowing calendar for states to ensure orderly market conditions.
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Compare Telangana with other states
Side-by-side comparison of fiscal metrics across Indian states