KCR to tweak fiscal policy for Golden Telangana

​Hyderabad: As the nation awaits the presentation of Interim Budget for the fiscal year 2019-20 on Friday by officiating Union Finance minister Piyush Goyal in the Lok Sabha, there are widespread expectations of sops for the farming community and the middle class.  So, Telangana Chief Minister K Chandrashekhar Rao is likely to give finishing touches to the state’s fiscal management for FY 2019-20 based on the specifics of the Union budget.    

Towards this end, the Chief Minister held a high-level meeting with officials of the state Finance Department at Pragati Bhavan on Thursday to discuss the possible contours of the central budget.  In fact, KCR has been holding a series of meetings for the last one month with Finance Department officials to ascertain the possible effects of the Union Budget (confirmed on Thursday as ‘Interim’ Budget) on the state’s finances.  

This is because the Telangana state government is expecting huge financial aid from the Centre to support the State’s multi-crore projects, mainly the Mission Bhagiratha and the construction of irrigation projects.  The State government has reasoned with the Centre to allocate Rs 20,000 crore for the Kaleshwaram irrigation project and Rs 30,000 crore for Mission Bhagiratha and Mission Kakatiya schemes.  

Officials said that KCR would finalise the state budget outlay based on the outcome of the central allocations. If the Centre commits any financial aid to Telangana, the priorities of the State government would be altered.   

The Chief Minister has already given indications that the State government would seek a Vote on Account in the place of the annual budget should the Centre not make any announcements for TS projects in its Interim Budget.

Sources said that KCR would take a call, post central budget presentation on Friday, on whether to seek a Vote-on-Account or present annual budget 2019-20.  

State Finance Secretary K Ramakrishna Rao and Advisor and secretary Finance GR Reddy have been entrusted with the responsibility of analysing the centre’s budget in its entirety. The two officials will make recommendations to the government on how to manage the finances in the next financial year.