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HYDERABAD: Asserting that the 2025–2026 Budget was “realistic,” Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka on Friday stated that it was the Cabinet’s firm resolve to present only facts, “unlike the previous BRS government which presented deceptive Budgets for 10 years.”
Vikramarka said that the Budgets in the BRS regime were not even close to reality, as they were increased by 15% to 20% every year, despite the fiscal deficit averaging 18%.
In his reply to the general discussion on the Budget, Vikramarka categorically countered all the aspects raised by Opposition parties in a one-and-a-half hour speech laced with political rhetoric. He said that the BRS government presented Budgets with a fiscal gap (deficit) of around 15% to 20% every year until 2024–2025. He said that the then BRS government presented a Budget of Rs 1,00,637.96 crore in 2014–15 and spent Rs 62,306 crore, with a fiscal gap of 38.09% between estimates and actuals.
He recalled that the BRS regime recorded a fiscal gap of 15.45% in 2015–16, 6.66% in 2016–17, 19.67% in 2017–18, 29.43% in 2018–19, 2.48% in 2019–2020, 79.3% in 2021–2022, 20.55% in 2022-23 and 20% in 2023–24. Vikramarka said that in contrast, Rajasthan spent 116%, Karnataka 130%, Madhya Pradesh 110%, Kerala 100%, and Maharashtra 99% of the Budget estimates
The finance minister disclosed that Telangana stood in 17th position in the country in spending the Budget estimates.
He recalled that the BRS government secured Rs 7,380 crore by leasing the ORR for 30 years and Rs 13,635 crore from excise auctions. He stated that the BRS government raised Rs 72,206 crore through the backdoor, which was intended for the next financial year. Vikramarka said that if this Rs 72,206 crore was excluded, the fiscal gap would have been even worse.
Pointing out that the Congress government increased the Budget by just 4.7% compared to the previous one, Vikramarka said that if the state government had increased the Budget by 20%, it would have been nearly Rs 4 lakh crore. He disclosed that the BRS regime spent a whopping Rs 16,70,711 crore in 10 years and accused the previous regime of not creating any infrastructure
“We have calculated 10 years of estimates, actuals, fiscal deficits, and many other aspects to finalise the Budget. If we had followed your (BRS) formula, we could have also taken people for a ride on a palanquin of aspirations. The chief minister was categorical in advising us to declare what can be done and implement it fully,” Vikramarka said.
Disclosing the key aspects of previous Budget estimates and actuals, he said that the state revenue was Rs 1,57,302 crore, Central aid Rs 50,032 crore and borrowings Rs 73,299 crore, with a total of Rs 2,80,633 crore actuals and expenditure of Rs 2,99,414 crore.
The finance minister revealed that of these amounts, the government paid Rs 77,342 crore towards salaries, Rs 88,009 crore towards interest and loan repayment and spent Rs 1,34,063 crore on other schemes. He stated that the government paid Rs 1,53,359 crore towards the principal and interest repayment on loans totalling Rs 1,58,041 crore.
Rejecting former minister T Harish Rao’s allegations that the Congress government was not following fiscal prudence, Vikramarka accused the previous BRS regime of spending Rs 2,89,115 crore without the approval of the state Legislature. He hit out at the BRS, stating that it was the BRS government that essentially lacked fiscal discipline.
He also rejected Harish’s allegations of a decline in GSDP, stating it stood at 12.5% over the previous year. “The state has not faced Arthika Mandya (economic slowdown), but it’s you (Harish and BRS) who are suffering Buddhi Mandyam (mental stagnation),” the finance minister stated. He said that the chief minister directed ministers to take passenger flights to save every rupee and spend it for the public good.
Charging Harish with using foul language against the chief minister, he said, “Education of the mind without education of the heart is no education at all.”
Answering questions about how the state would increase its income, the finance minister said that the government had streamlined sand sales and would also regulate other natural resources.
“We have controlled the sand mafia and will tackle other such groups to increase the state’s revenues. The income generated from the state’s natural resources has to be credited to the state exchequer,” he said. He also stated that the state government was focused on education, employment, and self-employment opportunities.
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