Hyderabad: The TS government is likely to fall short by nearly Rs 25,000 crore in Budget spending this year out of Rs 1.30 lakh-crore earmarked in Budget 2016-17.

Data obtained from various departments as part of Budget preparatory meetings for Budget 2017-18 indicate that the income from major revenue earning departments was affected since November 2016 following demonetisation, which further affected the spending.


Right from the start of the financial year 2016-17 on April 1, 2016, the government had lagged behind in Budget spending.

In the first half of the fiscal (April-September 2016), the government could spend only Rs 51,615 crore.

The government was making efforts to expedite spending in the second half of the fiscal (October 2016- March 2017), but the demonetisation announcement by the Centre on November 8, 2016, dashed its hopes.

The monthly average income of state government in all forms, which is Rs 5,500 crore, came down to less than Rs 2,500 in November with business transactions taking a hit due to demonetisation.

The government has decided to submit a revised Budget for 2016-17 in the Budget session by cutting down Plan and Non-Plan estimates by nearly Rs 25,000 crore due to short-spending and non-realisation of revenues as per Budgetary targets.

The government had earmarked Rs 72,195 crore under Plan and Rs 61,622 crore under Non-Plan expenditure.

However, only Rs 22,756 crore in Plan and Rs 28,858 crore Non-Plan expenditure was recorded in the first half of 2016-17.

The government estimated that it would touch Rs 1 lakh-crore spending mark by the end of this fiscal in March.

Finance minister Etala Rajender said the state’s revenue collection has increased by 13 per cent over the previous year but took a beating after the demonetisation announcement.

“Sales tax collection increased by 22 per cent, transport tax by 33 per cent and stamps & registrations revenue by 45 per cent, resulting in overall increase of 13 per cent,” Mr Rajender said.

The total receipts of the government till September-end including Central grants, loans, market borrowings and tax devolution were Rs 47,027 crore.