Hyderabad: Chief Minister K. Chandrasekhar Rao’s pet schemes, the Telangana Water Grid and Mission Kakatiya received major allocations in the Telangana state Budget, but there was no significant increase in funds for other flagship programmes like the two-bedroom houses for the poor and the KG to PG free education.

Non-plan expenditure has shot up significantly from Rs 51,989 crore last year to Rs 63,306 crore and the minister cited “recent increase of salaries to employees” for this. The plan outlay was increased from Rs 48,648 crore to Rs 52,383 crore.

“This Budget is not just a collection of numbers, but an expression of our values and aspirations. This is an action plan for promoting the welfare of the people of Telangana. The 14th Finance Commission has vindicated the historic truth of diversion of resources from Telangana in the undivided state by placing Telangana in the category of revenue-surplus states along with Gujarat,” Mr Rajender said

Referring to the current macro-economic situation in Telangana, he said the state economy had been witnessing deceleration since 2011-12. “From a double digit average annual growth of 12.87 per cent during 2004-09, growth slipped to 4.1 per cent in 2012-13. As per the advance estimates, growth is expected to recover to 5.3 per cent in 2014-15.

“Deficit rainfall adversely affected the agriculture sector this year. However, both services and industries sectors, which are the major contributors to the Gross State Domestic Product, are expected to improve significantly,” Mr Rajender added.

While voicing concern at the “severe constraints” in raising the plan outlay due to the less-than-expected tax devolution from the 14th FC and reduction in plan transfers from the Centre, Mr Rajender reiterated that the TRS government “will walk the talk”. He said the government would intensify the scheme of land purchase and assigning three acres to SC women with a provision of Rs 1,000 crore.

“Till January-end, 1,132 acres of private land and 270 acres of government land have been sanctioned, covering 525 beneficiaries,” he added.

“The new industrial policy focused on core manufacturing sectors and is expected to lead to production of high-quality goods at competitive prices. It will help establish the “Made in Telangana —Made in India” brand as globally,” he said.