State closed 2017-18 with a revenue growth of about 20%

The Telangana State celebrates fourth anniversary of its formation day on Saturday as it continues its march ahead with the highest rate of growth in revenue and economy. The State closed 2017-18 with a revenue growth of about 20% and GSDP growth of 10.4%.This despite the initial setback in the revenue after demonetisation in November, 2016 and the trade taking its time to adjust to the introduction of new Goods and Services Tax regime from July, 2017.

But notwithstanding the oft-repeated tag of rich State, Telangana’s debt burden too has been going up steadily. In the last four years, it rose from 93,115 crore in 2015-16 to 1.8 lakh crore in 2017-18.

Top government sources, however, acknowledge that the State’s debt was high, but well within FRBM limits. “This is because the investments had to be made in irrigation and rural infrastructure. This would help improve the growth rate of agriculture sector which had always been low compared to the service and manufacturing sectors, but had two-thirds of population depended on farming,” they said. The capital expenditure was made in the last four years on irrigation projects, Mission Bhagiratha drinking water supply project, road connectivity and housing in tune with rapid urbanisation. These expenditures on infrastructure are one-time investments and would start yielding returns through the economic growth. “Agriculture sector too should prosper for the overall economy to do well. By creating irrigation potential and providing timely investment support before the agriculture season starts will show results in future,” they aver.

“Our feedback from fields show that farmers are using the money given under Rythu Bandhu for buying fertilisers, seeds, etc. This intervention by the State is bound to boost the agricultural growth rate,” they say.

Asked about the challenges in the year ahead, officials said the focus would be to grow at the same pace, timely completion of projects and to ensure delivery under welfare schemes to the deserving. The gains from the investments on irrigation, water supply, health and education should be stabilised for the general well-being. Once the irrigation potential is created, it would not be difficult for farmers to get remunerative prices for their produce. But it needs constant monitoring. After the investment on infrastructure which the government did so far, the focus would be on expenditure on social sector development and human resources, to ensure holistic development. “We are definitely on track,” highly-placed sources said.