Union Budget 2023 comes as a disappointment to Telangana as many of its demands remain unfulfilled

There is nothing particular about Telangana in the Union Budget, say Finance officials.

The Union Budget 2023 presented in the Parliament by Finance Minister Nirmala Sitaraman has come as a disappointment to the Telangana Government which claimed that “there is nothing particular about Telangana”.

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Finance Department officials termed the Budget as “business like” and said the Centre had in fact reduced the outlay for national rural employment guarantee scheme at a time when the State was asking for enhancement of mandays under the scheme. “There are of course some positives such as focus on capital expenditure and fiscal consolidation, but most of the State’s demands remained unconceded,” they said.

A senior official said the incentive of enhancement of 0.5% fiscal deficit to States was of no big use to the State as it is anyway not participating in the power sector reforms as mandated by the Centre to avail it.

Strong pitch made by Finance Minister T. Harish Rao to bring down the share of cesses and surcharges as a percentage of gross tax revenue to a level not exceeding 10% remained unfulfilled.

The State expressed concern during the pre-Budget meetings convened by the Union Finance Ministry that its interests are being compromised with the increase in recourse to levy of cesses and surcharges by the Centre claiming that tax devolution to States as percentage of gross tax revenue of the Centre worked out to 29.7% in 2022-23 as compared with the share of 41% recommended by the XV Finance Commission.

“Thus, increase in the amounts collected through cesses and surcharges has not only compromised the recommendation of the Constitutional institution but also the interests of States,” Mr. Harish Rao lamented. There was, however, no announcement forthcoming in the Union Budget regarding redressal of the grievance raised by the State.