Telangana economy updates
Gross State Domestic Product (GSDP)
The Gross State Domestic Product (GSDP) of Telangana for 2018-19 (at current prices) is approximately Rs 8,42,631. This is 15% higher than the revised estimate for 2017-18.
The growth in GSDP of Telangana has been increasing from 6.8% in 2013-14 to 10.4% in 2017-18. (Budget 2018-19)
Share of Telangana in All-India:Trends
The share of the State GSDP in All-India GDP was 4.11% in the year 2011-12, which decreased to 4.02% in 2013-14. However, the state’s share has been on increasing trend since 2014-15 onwards from 4.06% to 4.37% in 2017-18. The share of the state in All India GDP has increased by about 35 points within a short span of about 3 years. It is noted that steep increase in state share is due to the fact that State’s growth rate has been higher than that of All-India growth rate.
Growth trends
As per advance estimates for the year 2017-18, the Gross Value Added from the primary sector is likely to grow at a pace of 9.2 percent at current prices, as against 5.3 percent anticipated growth of All India. This growth is expected to realize because of the prevailing seasonal conditions and initiatives of the government in irrigation and power supply sectors.
The GVA (Gross Value Added) from secondary sector is expected to register a growth rate of 9.0 percent, as against the All-India growth rate of 7.6 percent. Similarly, the GVA from tertiary sector is anticipated to register an impressive growth of 15.3 percent at current prices, in comparison to the All India growth rate of 12.2 percent. The total GVA comprising all three broad sectors is likely to register an impressive growth of 13.1 percent, which is 3.5 percent higher than that of All India GVA growth. (Economic outlook 2018)
Total receipts
Total receipts (excluding borrowings) 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. (Budget 2018-19)
Revenue surplus
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 is targeted at Rs 29,077 crore (3.5% of GSDP). (Budget 2018-19)
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.
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.
Per capita income:Trends
The per capita income of Telangana in 2017-18 (at current prices) is Rs 1,75,534. This is more than the average national per capita income of Rs 1,12,764 in 2017-18.
The Per Capita Income of Telangana is much higher than the All India over the years. There is a steep rise in the PCI of the State from Rs. 91,121 in the year 2011-12 to Rs. 1,75,534 in the year 2017-18, registering a growth rate of 93 percent over 2011-12. Whereas the PCI of All India was Rs. 63,462 in the year 2011-12, and increased to Rs. 1,12,764 in the year 2017-18, registering a growth of 78 percent over 2011-12. This implies that the PCI of the State grew much faster than the All-India PCI. (Economic outlook 2018)
Capital expenditure
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. (Budget 2018-19)
Revenue expenditure
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.
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.
Area under food and non-food crops
Of the 43.8 lakh hectares area cultivated in Kharif season in 2016-17, about 59% was under food crops and about 41% was under non-food crops. However, the share of food-crops was 87.4 per cent during the Rabi season with a cultivated area of 13.87 lakh hectares. The total area cultivated during Rabi season was 15.87 lakh hectares. (Economic outlook 2018)
Agriculture Production trends
The production of food-grains including cereals & millets and pulses, has been estimated at about 95.01 lakh tonnes in the current agricultural year (2017-18), as against 101.29 lakh tonnes last year. The Oil seeds production was estimated to be 5.77 lakh tonnes, as against 7.22 lakh tonnes in the previous year.
Area under cotton was estimated to be 19.03 lakh hectares in 2017-18, as against 14.09 lakh hectares in the year 2016-17, showing an increase of 35.06% over the previous year .The production of cotton has been estimated to be 43.32 lakh bales, which is higher by 8.88 lakh bales over the previous year production of 34.44 lakh bales, indicating an increase of 25.78%.