Election ‘guarantees’ galore, but can state’s revenue deliver?

Hyderabad: BRS, Congress and BJP have released their respective election manifestos with the pink party and grand old party focusing more on freebies. As the state’s current fiscal budget is around 2.9 lakh crore, but considering some of the major promises made by these parties, it could go up to 3.5 lakh crore, making things difficult for the next regime.A glance at the budget figure reveals that the state government had expected over 2 lakh crore budget to be realized, but actual income fell way short. For the current (2023-24) fiscal, the government has proposed a budget of 2,90,396 crore with total revenue pegged at 2,59,861 crore. Till August, the state could garner only 99,106 crore. In the previous fiscal year (2022-23), the government had presented a budget of 2,56,958 crore, with revenue estimate of 2,45,256 crore. However, the government disclosed to the Comptroller and Auditor General (CAG) of India that only 1,92,097 crore was collected and only 1,26,617 crore was collected through taxes. Another 13,994 crore was deducted as central tax, implying that the net income was only 1,40,611 crore. Also, 19,553 crore was raised through sale of land and other means. The grants, on an average, received in the five years between 2018-19 and 2022-23 was to the tune of 11, 000 crore. If these are added, the state’s net revenue would be 1.51 lakh crore. Over 60,000 crore has been paid for employee wages, pensions and retired employee subsidies. The rest must be allocated for welfare schemes, other advances and employee loans. Revenue and payments might increase by 15-20% this fiscal year as well. As BRS and Congress have promised to enhance sops, the budget might have to be increased. With the additional burden, a budget of 3.5 lakh crore would be required. However, the state’s revenue has not exceeded 2 lakh crore so far. BJP‘s main doles are free laptops to girls pursuing higher education and free temple trips. With no clarity on the schemes, the two sops, according to guesstimates, might cost about 500-1,000 crore. However, the party has also included giving four cylinders per annum free for ration card holders. Though BJP leaders promised free education and free health, the party, however, did not include it in the manifesto after the top bosses red-flagged them. A back-of-the envelope calculation of BRS’s main promises like 5 lakh insurance, enhancement of pension amount to 5,016, gas cylinder for 400, enhancement of Rythu Bandhu to 16,000, allowance for women and other promises might cost the exchequer an additional 52,000 crore. Congress manifesto, which has included more freebies, is expected to cost the exchequer 68,000 crore. Congress’s main promise of loan waiver of up to 2 lakh for farmers would cost 38,398 crore, while the promise of 200 units power-free another 2,500 crore.