CM KCR holds review meeting on budget preparation

Hyderabad: Telangana Chief Minister K. Chandrashekhar Rao said that the Finance Commission should think of leveraging the Indian economy and its role has to be totally changed and its functioning should not be a routine affair.

The Chief Minister held a review meeting with finance and senior officers in the backdrop of possibility of a visit of 15th Finance Commission to the state shortly. Chief Advisor Rajiv Sharma, Chief Secretary SK Joshi, Financial Advisor GR Reddy, CMO officers Narsing Rao, SmitaSabarwal, Sandeep Sultania, Manik Raj, Special CS Rajeshwar Tiwari, Finance Secretary Ramakrishna Rao, PR Secretary Vikas Raj, Commissioner PR Neetu Prasad, IT Secretary GTV Rao and others attended the meeting.

KCR said that though there have been different Governments at the National and state level since independence with different political parties coming to power from time to time there has not been a qualitative change and hence it’s time to introspect on this. He expressed unhappiness as to why people are disappointed with the policies of governments and are in an agitating mood. In this context, CM mentioned that the two political systems have miserably failed the nation.

The Chief Minister said, "The broad fiscal policy lies with the Government of India. Whatever they are supposed to devolve, they have instead centralized. I told NITI Ayog in one of the meetings that, the centre should not come in the way of growing states. The growth of the state should be considered as the growth of country. Do not disincentivise growing states. Even for meagre funds lots of conditions are imposed by the centre. The relation that should exist between union government to state government is absent. Its highly unfortunate that the policies devolution is in a manner of dishonouring state government and states’ powers”.

Referring to the Finance Commission and its role CM said that, “The Finance Commission visits states with pre-occupied notions. They come with pre-occupied ideas like ToR which in fact should be done after they complete their visit, discuss with state governments and take their views. Its better if the Finance Commission becomes a policy formulating body. Devolution is the right of the states. Lot of diversity is there with reference to states’ requirements”.

With these observations, the Chief Minister KCR instructed the Finance Department officers to prepare a memorandum highlighting Telangana State’s requirements and it should include what all that the state needs.

Budget Exercise-Pre-requisites:

Chief Minister K. Chandrashekhar Rao also reviewed the budget preparation arrangements and on the pre-requisites. He said that the state budget should be formulated only after defining as to what should be the Telangana State “Livelihood” (రాష్ట్రంలోని జీవికను నిర్వచించుకోవడం). Defining upon as to how and what it should be the modalities of budget to be worked out and it should be worked out broadly for the next five years and merely for just one year. He said the concept and basis for formulating this year’s budget should be “Where is Telangana Today and where would it be after five years”. He said that the Government as a law-making body assumes its role as a facilitator, provocator, animator and motivator. He suggested that a comprehensive plan has to be prepared before preparing the budget. He also suggested to farm different task forces for different areas.

KCR said that budget should concentrate on working out modalities and ways and means for increasing the growth. For this said CM we should know what are the issues that help us in our economic growth.

The Chief Minister said that, “Having been elected as CM I have been thinking what best I can do to the people. Preparation of budget should be preceded only after abundant clarity but not in a hurry. The process should also begin only after the people who matter in preparation makes up their mindset. We should workout our advantages, disadvantages, strengths, weaknesses and the socio-economic pattern. We should have a clear assessment of what all moneys we are likely to get in the next five years and how we are going to spend”.

KCR citing the examples of different areas for working out budget proposals, first mentioned about the water resource followed by other departments. He said while preparing the budget estimates for irrigation, it should be taken into consideration about the money government spent during the past four years and likely to spend this year as well as during coming five years which all put together may workout to Rs 2 lakh Crore. CM mentioned that for all irrigation projects all types of clearances from Government of India have been obtained which is a great achievement and this should reflect in budget.

Similarly, the Chief Minister gave the examples of sheep distribution and how it can be taken forward. Another big area of advantage CM mentioned is the fisheries, handloom sector. CM said that handloom sector can attract international market and as such the skill of Telangana to be exploited. Another area CM mentioned is that power sector and said that Telangana state stands number one in power percapita consumption. These are to be considered before preparation of budget proposals, said the CM.

The Chief Minister suggested that while preparing budget proposals a thought may be given as to how Kaleshwaram could be marketed as a tourist spot as well as pilgrimage centre. The Triveni Sangamam there becomes a best tourist spot, said the CM. Budget should focus on the tourism advantages of Telangana. The Chief Minister asked the officials to workout modalities for modernization of agriculture including research facilities in university. Budget should also take into consideration as to the concept of food processing units could be taken forward.

Referring to Education and Health sectors, the Chief Minister suggested to examine how best state can take advantage of private universities. He said that rules for starting private universities are to be framed in such a way that state can attract students who otherwise prefer other states and abroad. He said even international students could be attracted. CM said that there need to be a planning to make Telangana as a healthy state. Reforms are to be made with a human angle.

The drinking water is now available all over the state, said the Chief Minister. He said that it is an indicator of development index. While preparing budget, he suggested that, estimates are to be made with regards the industrial requirements and the type of infrastructure required needs to be worked out.

On Hyderabad City:

CM said that “Hyderabad is a global city. It’s one among the five larger cities in the country. It needs minimum 100 urban parks. To save Hyderabad prepare a Master Plan which will last for generations to come. To change any para in that it’s the Cabinet which is competent. Let the budget reflect as to how Hyderabad could be made as truthfully global and how much we need to spend during next five years. Hyderabad will stand as a backbone of economy to the Telangana State”.

On Training to Ministers and Secretaries:

After the formation Cabinet as and when it takes place, there will be a rigorous orientation cum training program for all the Ministers and Secretaries in Administrative Staff College of India, Hyderabad on their roles, powers and responsibilities. The program schedule among others will include acquainting the ministers with rules and regulations, business rules of secretariat, budget making procedures, their limits and priorities as well as on state and national economy.