Capital expenditure is the key factor for the economic growth of any state or any country. To equitably distribute wealth among the poorest of the poor and the vulnerable, wealth generation through capital expenditure plays a vital role. Telangana is now the top state in capital expenditure and wealth generation.
In just two months of this financial year, the state has spent 18.08% of its capital expenditure budget estimates. Out of Rs. 37,524 crores allocated for capex, Telangana government already spent Rs. 6,785 crores in the months of April and May. No other Indian state is close to Telangana in capital expenditure. In 2014-15, the capex of Telangana was Rs. 11,583 crores which increased exponentially to Rs. 29,104 crores in 2021-22.
In a stark contrast, the BJP and Congress ruled states are falling behind in capital expenditure despite the BJP-ruled states like Uttar Pradesh receiving a lion’s share from the union government funds. Out of the budget allocated for capital expenditure, Uttar Pradesh just spent 1.90%, Gujarat spent 7.92%, Madhya Pradesh spent 12.56%, and Uttarakhand spent 3.86% in April and May. In Congress-ruled states, the capex figure is much worse. Karnataka utilized just 0.24% of the budget allocation, Chhattisgarh spent 3.22%, while Rajasthan and Himachal Pradesh used 13% and 5.49% respectively.
Furthermore, the economy of the state is also on solid footing. Telangana had already achieved a revenue surplus of Rs. 1,042.43 crores in just two months of April and May which is 21% of budget estimates. On the contrary, according to the Comptroller and Auditor General of India, Uttar Pradesh and Karnataka recorded a revenue deficit of Rs. 250.40 crores and Rs. 1218.27 crores respectively in the same period. Overcoming a revenue deficit of Rs. 3,963.32 crores in 2014-15, Telangana posted a revenue surplus of Rs. 6,508.22 crores at the end of last financial year.
Capital expenditure accounts for the amount used for irrigation projects, roads, buildings, infrastructure facilities, health, education, etc. Capital expenditure fuels economic growth, boosts wealth generation, and improves employment opportunities. Telangana state, under the leadership of CM KCR, has been unmatchable in capital expenditure.