Economic slowdown hampers KCR’s budget

Economic slowdown hampers KCR’s budget
Economic slowdown hampers KCR’s budget ( Image Courtesy: TelanganaCMO )

Telangana Chief Minister KCR has introduced the annual budget for 2019-20 in the assembly. On an interesting note, new finance minister T. Harish Rao has presented the Budget in the Legislative Council. The presented budget is of the figures of Rs 1,46,492.30 crore. The introduced budget is 19.5 percent record less than the vote-on-account that KCR has presented before the Lok Sabha polls in February. On the precise note, the presented vote-on-account was of Rs 1,82,017 crore, which indicates the shortfall of Rs 35,524.70 crore.

On to the lessened budget of the state, CM told, due to the country’s slowed down it has directly or indirectly impacted the budget figures of the state. However, KCR has assured saying, there will be no change in the government and it will be functioned as it is.

Telangana CM KCR said that “The Centre decides the broad fiscal policies of the country. The states have no option but to follow the fiscal policies of the Centre. Telangana is no exception. I regret to present a Budget for this year when both the Centre and State are going through a severe financial crisis. We have to tread carefully and cautiously during such a testing time”.

Elaboratively KCR said that “there is no need for the government to hide from placing facts before the people. It is a harsh reality. Due to economic slowdown, revenues of both the Centre and state have come down. It is undeniable that the economic slowdown led to some setbacks. The government has prepared financial proposals based on hard facts.”

“in the first quarter of 2018-19, the country’s GDP recorded a growth of eight percent. From then onwards, the GDP has been on the decline continually (last year second quarter seven percent, third quarter 6.6 percent, final quarter 5.8 percent, and the first quarter of this financial year five percent). This clearly indicates a steep decline in economic growth in India”, Statistically, KCR explained.