Telangana Economic Survey and Current updates must for prelims and mains exams

Telangana :  Economy current affairs

Gross State Domestic Product

The Gross State Domestic Product (GSDP) of Telangana for 2018-19 (at current prices) is approximately Rs 8,42,631 crore. This is 15% higher than the revised estimate for 2017-18.

Total expenditure

Total expenditure for 2018-19 is estimated to be Rs 1,74,454 crore, a 22.4% increase over the revised estimates of 2017-18. In 2017-18, there was a decrease of Rs 7,140 crore (4.8%) in expenditure over the budget estimates.

Total receipts (excluding borrowings)

Total receipts for 2018-19 are estimated to be Rs 1,41,282 crore, an increase of 22.8% as compared to the revised estimates of 2017-18. In 2017-18, total receipts (excluding borrowings) fell short of the budgeted estimate by Rs 4,935 crore. Revenue surplus for the next financial year is targeted at Rs 5,520 crore, or 0.7% of the Gross State Domestic Product (GSDP).

Fiscal deficit target

Fiscal deficit is targeted at Rs 29,077 crore (3.5% of GSDP).

Budget Estimates for 2018-19

The total expenditure in 2018-19 is targeted at Rs 1,74,454 crore. This is 22.4% higher than the revised estimates of 2017-18. This expenditure is proposed to be met through receipts (other than borrowings) of Rs 1,41,282 crore, and borrowings of Rs 33,200 crore. Total receipts for 2018-19 (other than borrowings) are expected to be 22.8% higher than the revised estimates of 2017-18.

Panchayati system in telangana

The Panchayat Raj Bill will be introduced for comprehensive development of villages and to strengthen the Panchayat system.

Farm investment

Investment support of Rs 4,000 per acre per crop for two crops will be provided to every farmer. Rs 12,000 crore is allocated for this purpose.

Rhythu Bhima Pathakam

A farmer group insurance will be launched to provide life insurance cover of Rs five lakh. Rs 500 crore is allocated for this purpose.

 New medical college

New medical colleges will be established at Mahaboobnagar, Siddipet, Nizamabad, Suryapet, and Nalgonda.

Eco-pharma city

An eco-pharma city to be established in Muchharla in Ranga Reddy District in an area of 19,331 acres.

Expenditure in 2018-19

  • Capital expenditure for 2018-19 is proposed to be Rs 48,99 crore, which is an increase of 36.5% over the revised estimates of 2017-18. This includes expenditure which affects the assets and liabilities of the state, and leads to creation of assets (such as bridges and hospitals), and repayment of loans, among others.
  • Revenue expenditure for 2018-19 is proposed to be Rs 1,25,455 crore, which is an increase of 17.7% over revised estimates of 2017-18. This expenditure includes payment of salaries, maintenance, etc.
  • In 2018-19, Telangana is expected to spend Rs 18,286 crore on servicing its debt (i.e., Rs 6,594 crore on repaying loans, and Rs 11,691 crore on interest payments. This is 12.9% higher than the revised estimates of 2017-18.



Tax Revenue

  • The total own tax revenue of Telangana is estimated to be Rs 73,752 crore in 2018-19.
  • The tax to GSDP ratio is targeted at 8.8% in 2018- 19, which is higher than the revised estimate of 8.4% in 2017-18. This implies that growth in collection of taxes is expected to be higher than the growth in the state economy.
  • The State Goods and Services Tax (SGST) and Sales tax are the largest components contributing to 35% each to Telangana’s own tax revenue in 2018-19. The SGST is expected to generate Rs 26,040 crore.
  • The state is expected to generate Rs 25,942 crore through sales tax. Further, it is expected to raise Rs 10,600 crore from the state excise duty, which is levied on the manufacture of alcohol.
  • Tax revenue will also be generated by levying stamp duty on real estate transactions (Rs 4,700 crore), and taxes on vehicles (Rs 3,950 crore).

Deficits, Debts and FRBM Targets for 2018-19

  • The Fiscal Responsibility and Budget Management (FRBM) Act, 2006 of the state provides annual targets to progressively reduce the outstanding liabilities, revenue deficit and fiscal deficit of the state government.
  • Revenue deficit: It is the excess of revenue expenditure over revenue receipts. A revenue deficit implies that the government needs to borrow in order to finance its expenses which do not create capital assets. The budget estimates a revenue surplus of Rs 5,520 crore (or 0.7% of GSDP) in 2018-19. This implies that revenue receipts are expected to be higher than the revenue expenditure, resulting in a surplus. The estimate indicates that the state is expected to meet the target of eliminating revenue deficit, as prescribed by the 14th Finance Commission.
  • Fiscal deficit: It is the excess of total expenditure over total receipts. This gap is filled by borrowings by the government and leads to an increase in total liabilities. In 2018-19, fiscal deficit is estimated to be Rs 29,077 crore, which is 3.45% of the GSDP. The estimate exceeds the 3% limit prescribed by the 14th Finance Commission. The Finance Commission had recommended that this limit may be relaxed to a maximum of 3.5% if states are able to contain their debt and interest payments to certain specified levels.
  • Outstanding Liabilities: It is the accumulation of borrowings over the years. In 2018-19, the outstanding liabilities are expected at 21.4% of the GSDP.


Telangana has allocated 8.2% of its total budget on education in 2018-19. This is almost half of the average expenditure share allocated to education by 18 other states (using 2017-18 BE). Between 2016-17 and 2018-19, there is a gradual decrease in the spending on education from 10.6% to 8.2%.


Telangana has allocated 4.7% of its total expenditure on health, which is marginally lower than the average expenditure of 18 other states. However, the overall spending on health has been increased from 4.3% in 2016-17 to 4.7% in 2018-19.


The state has allocated 10.9% of its total budget towards agriculture and allied activities. This is higher than the allocations of 18 other states (6.4%). In 2016-17 and 2017-18, spending on agriculture was 5.9% of the total budget.

Rural Development

Telangana has allocated 4.6% of its expenditure on rural development. This is lower than the average (5.6%) of the 18 other states. Further, the share of expenditure on rural development has decreased from 5.8% in 2016-17 to 4.6% in 2018-19.

Telangana red-flags Data Protection Bill citing impact on startups, investments  

Telangana has become the first state to raise concerns over the proposed data protection bill — submitted by the Justice BN Srikrishna Committee — as it fears implementation of certain clauses, especially one on data localisation, will isolate Indian startups and hurt investments in the state and the country.

Early onset of pink bollworm in cotton triggers alarm in Telangana

Perhaps for the first time in the country, incidence of pink bollworm has surfaced in the first 30 days of the kharif season in Telangana, one of the major cotton producing States, triggering alarm among agricultural scientists and farmers.  Scientists say this early cycle of pink bollworm incidence is unprecedented and surprising. Both the cotton farmers and the Department of Agriculture were anticipating the pest attack during November-December as it developed resistance to the Bollgard-II.

Fall Armyworm attacks maize crop across Telangana

A fresh problem in the form of Fall Armyworm, or Spodoptera frugiperda, threatens farmers across the country this kharif season. Currently infesting the maize crop, agricultural scientists warn that this pest could soon spread and attack other crops, including cotton, sorghum, sugarcane, cabbage and soyabean.

Bonds ready for 26.52 farmers under Telangana govt’s insurance scheme

Telangana Agriculture Minister Pocharam Srinivasa Reddy recently announced that insurance bonds under the state government’s “Rythu Bima” insurance scheme have been prepared for more than 26.52 lakh farmers.

According to the release, crops have been planted so far in 94 lakh acres in the ongoing rainy season against the normal area of 1.08 crore acres, it said.  Due to the impact of rains, the release said, reports have been received about damages to cotton crop in 97,000 acres and 8,200 acres of red gram in Adilabad district.

India payment bank in telangana

The India Post Payments Bank (IPPB) would be launched in Telangana Postal Circle in 23 branches and 115 Access Points on September one, Chief Postmaster General, Telangana Circle, B Chandrasekhar, said here today.

Telangana launches t-wallet

The Telangana Government has launched a digital wallet, named T-Wallet, which doesn’t charge transaction fee from consumers. The government is planning to use the wallet, available in Google Play, for remittances under job guarantee scheme MNREGA and scholarships for students.

Telangana rural economy on the upswing

it is possible for one to work out the Returns on Investment (RoI) in a sector like agriculture where income is out of the tax bracket? This question is all the more pertinent and relevant in the case of Telangana where land is in the higher reaches than the course of the two major rivers — Godavari and Krishna — making lifting of water the only solution for irrigation. There is virtually no scope for surface irrigation in the State on account of its land contours, vis-a-vis the rivers, leaving the State government with no choice but to go in for lift irrigation schemes like the prestigious Kaleshwaram and Palamuru Rangareddy projects. In fact, these and other similar schemes are part of a major livelihood support intervention by the government.

Telangana economy grows 10.4 per cent

Telangana registered a double digit growth in Gross State Domestic Product (GSDP) at 10.4 per cent as against the national GDP growth of 6.6 per cent in 2017-18. This is highest growth ever since the formation of the state.

Kaleshwaram Project

Telangana state is constructing a massive irrigation scheme known as the Kaleshwaram lift irrigation project (KLIP).

It will provide irrigation water to 738,851 hectares (ha) (18.25 lakh acres) with 134.25 tmc ft (3,800 million cubic metres) of water.



Telangana power demand crosses 10,000 MW

Power demand in Telangana surged past the 10,000 MW mark and peaked to 10,429 MW for the first time in its four-year history.


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