July 2024 - Page 8 of 48 - Telangana NavaNirmana Sena

In the second phase of the Metro Rail project in the capital, the Telangana government has revised the proposals, resulting in increased distance and estimated costs. Previously proposed to cover 70 km across five corridors, the new plan extends the route by an additional 8.4 km, bringing the total distance to 78.4 km. Consequently, the estimated cost has risen to ₹24,042 crore. This update was announced by the Finance Minister, Bhatti, during his budget speech. Key Route Extensions Rayadurgam to Kokapet Neopolis: Initially, the 8 km route from Rayadurgam to Wipro Junction, covering the Financial District to the US Consulate, has been extended to Kokapet Neopolis. This extension adds more than 3.3 km to the route, contributing to the increased estimates. Officials recently inspected suitable lands in Kokapet for setting up a metro depot. Airport Metro: The proposed Airport Metro, initially estimated at 29 km from Nagole, LB Nagar, Chandrayangutta, Mailardevpally Junction through Jalpalli to Shamshabad Airport, has now been extended by over 4 km. Additionally, a 5 km metro route from Mailardevpally to Aramghar and Kothi High Court is also included in the second phase. Other Corridor Updates The remaining corridors, including LB Nagar-Hayatnagar, Miyapur-Patancheru, and Falaknuma-Chandrayangutta, remain largely unchanged. However, Nagole, LB Nagar, and Chandrayangutta are set to be developed as metro interchange stations, as announced by the Finance Minister in the budget speech. Conclusion The revised proposals for the second phase of the Hyderabad Metro Rail project reflect the government's commitment to enhancing urban connectivity and accommodating the city's growing transportation needs. By extending the routes and increasing the project scope, the Telangana government aims to provide comprehensive metro coverage, facilitating easier and faster travel for the city's residents.

July 26, 2024

Hyderabad Metro Rail Phase-II Proposals Expansion to Kokapet

In the second phase of the Metro Rail project in the capital, the Telangana government has revised the proposals, resulting…

Sectoral Contributions and Economic Growth in Telangana: A Detailed Analysis Sectoral Contributions to Telangana's Economy Telangana's economy is divided into three primary sectors: Agriculture & Allied, Industry, and Services. Since the state's formation, the Services sector has consistently been the largest contributor to Telangana's Gross State Value Added (GSVA). For the fiscal year 2023-24, the Advance Estimates indicate that the Services sector accounted for a substantial 65.7% of Telangana's GSVA at current prices. The Industrial sector, including mining and quarrying, contributed 18.5%, while the Agriculture & Allied sector contributed 15.8%. Figure 1.1 illustrates the sectoral composition of Telangana's GSVA for 2023-24. Per Capita Income and Rising Debt Telangana has experienced a significant increase in per capita income, rising from Rs. 1,24,104 in 2014-15 to Rs. 3,47,299 in 2023-24. However, this period also saw a dramatic surge in the state's total debt, escalating from Rs. 72,658 crore to Rs. 6,71,757 crore, marking an increase of over 824.5%. Consequently, per capita debt rose from Rs. 20,251 to Rs. 1,76,360. This sharp rise in debt compared to income growth suggests a heavy reliance on borrowing to fund expenditures, potentially threatening fiscal sustainability. Without stringent fiscal reforms, Telangana's economic health could be at risk, necessitating measures to balance expenditure with revenue generation and reduce dependence on borrowing. Economic Growth and Macroeconomic Trends Despite global and national economic challenges, Telangana has demonstrated resilience and consistent growth. The state's Gross State Domestic Product (GSDP) at current prices for 2023-24 stands at Rs. 14.64 lakh crore, reflecting an 11.9% increase over the previous year. This growth rate surpasses the national average, indicating Telangana's robust economic performance. Sectoral Growth Highlights Agriculture & Allied Sectors: This sector, which employs 47.3% of Telangana's population, saw a year-on-year growth in Gross Value Added (GVA) of 4.0% between 2022-23 and 2023-24. Industrial Sector: The industrial sector achieved a growth rate of 10.1% in 2023-24. Services Sector: As the primary driver of Telangana's economic growth, the Services sector witnessed a remarkable 14.6% increase in GVA at current prices in 2023-24. Macroeconomic Resilience Amidst Global Uncertainty Despite uncertainties arising from geopolitical developments and expansionary fiscal measures during the COVID-19 pandemic, the Indian economy has maintained healthy macroeconomic fundamentals. The International Monetary Fund (IMF) projects global growth to remain steady at 3.2% in 2024. Factors influencing this projection include high central bank policy rates to combat inflation, withdrawal of fiscal support amid high debt levels, and low underlying productivity growth. Global headline inflation is expected to decline from an average of 6.8% in 2023 to 5.9% in 2024. Telangana's GSDP Performance Telangana's economy has shown rapid and robust growth, positioning itself for a promising future. The state's GSDP at current prices for 2023-24 is valued at Rs. 14.64 lakh crore, reflecting an 11.9% growth over the previous year. This performance surpasses the national economy's growth rate of 9.1% during the same period, highlighting Telangana's superior economic resilience. Comparison with National and Other States Figure 1.2 shows the growth rates of Telangana and the national economy at current prices. Telangana experienced a nominal GSDP growth rate of 16.4% in 2022-23 compared to All-India's 14.2%. For 2023-24, Telangana's nominal GSDP growth rate is projected at 11.9%, compared to All-India's 9.1%. This indicates a consistent outperformance of the state economy over the national average. GSDP Growth Among General Category States Figure 1.3 illustrates the GSDP growth rates for General Category states in 2023-24. Tamil Nadu leads with a growth rate of 14.2%, followed by Uttar Pradesh at 12.8%, and Telangana at 11.9%, positioning it third among General Category states. Contribution to National GDP Telangana's contribution to India's GDP has shown a steady increase over the years. In 2021-22, the state accounted for 4.80% of the national GDP. This share rose to 4.90% in 2022-23 and further to 5.0% in 2023-24, reflecting Telangana's growing economic significance and enhanced role in the national economy. GSDP at Constant Prices Based on the Advance Estimates for 2023-24, Telangana's GSDP at constant (2011-12) prices increased by 7.4% over the previous year. During the same period, national real GDP increased by 7.6%. Figure 1.5 shows the growth rates of Telangana and All-India for 2022-23 and 2023-24, indicating a close alignment with the national growth trajectory. Conclusion Telangana's economy has demonstrated resilience and consistent growth despite global and national economic challenges. With robust sectoral contributions and a steady increase in GSDP, the state is well-positioned for future economic success. However, the rising debt levels necessitate stringent fiscal reforms to ensure long-term economic sustainability. As Telangana continues to navigate economic challenges, maintaining a balance between expenditure and revenue generation will be crucial for its sustained economic health.

Telangana State

July 25, 2024

తెలంగాణ సామాజిక ఆర్ధిక సర్వే 2024 Sectoral Contributions and Economic Growth in Telangana

Sectoral Contributions and Economic Growth in Telangana: A Detailed Analysis Sectoral Contributions to Telangana’s Economy Telangana’s economy is divided into…

Telangana Budget 2024-25: Major Investments for Hyderabad's Metro and Infrastructure Development In the recent state budget session on July 25, Telangana Deputy Chief Minister Bhatti Vikramarka announced a significant allocation of Rs 24,042 crores aimed at developing five new corridors for the Hyderabad Metro Rail. This substantial investment underscores the Congress government’s commitment to expanding Hyderabad’s urban infrastructure and enhancing its connectivity. Expanding Hyderabad Metro Rail: A Rs 24,042 Crore Vision The budget outlines plans to extend the metro rail by 78.4 kilometers, with Rs 500 crore dedicated to extending the service to the Old City area. Additionally, Rs 100 crore has been earmarked for the metro expansion towards Shamshabad airport. These expansions are part of a broader strategy to improve transit connectivity across Hyderabad. Key extensions include: Nagole to LB Nagar Corridor: Development of interchange stations at Nagole, LB Nagar, and Chandrayanagutta. Miyapur to Patancheru and LB Nagar to Hayathnagar: These extensions will further integrate suburban areas with the metro network. Strengthening Urban Infrastructure: Core Urban Region and ORR Developments The budget also emphasizes the development of the Core Urban Region (CUR) and the Outer Ring Road (ORR). Under the leadership of Telangana Chief Minister Revanth Reddy, the Hyderabad Disaster Relief and Asset Protection Agency (HYDRAA) will be established with a budget of Rs 200 crores to enhance disaster prevention measures. Additionally, Rs 200 crore, Rs 500 crore, and Rs 50 crore have been allocated for the ORR, Metro Rail, and the Multi-Modal Transport System (MMTS) respectively. Major Investments in National Highways and Expressways Significant investments have been proposed for the northern and southern sides of the ORR

Telangana State

July 25, 2024

500 cr for Hyderabad Metro and Infrastructure Development in Telangana Budget 2024-25

Telangana Budget 2024-25: Major Investments for Hyderabad’s Metro and Infrastructure Development In the recent state budget session on July 25,…

Telangana Budget 2024-25: Comprehensive Breakdown and Key Allocations The Telangana budget for the fiscal year 2024-25 stands at a substantial ₹2,91,159 crore, reflecting the state's ambitious plans for development and welfare. This comprehensive financial plan aims to address various sectors, from agriculture and education to infrastructure and welfare, ensuring balanced growth and prosperity. Revenue and Capital Expenditure The budget outlines a revenue expenditure of ₹2,20,945 crore, allocated to cover the state's ongoing operational costs and services. Additionally, a capital expenditure of ₹33,487 crore is designated for long-term investments in infrastructure and other capital projects, crucial for sustainable growth. Key Sector Allocations Agriculture and Allied Sectors Agriculture remains a cornerstone of Telangana's economy, with a significant allocation of ₹72,659 crore. This substantial investment underscores the government's commitment to boosting agricultural productivity, supporting farmers, and enhancing rural livelihoods. Special Component Sub Plan (SCSP) and Tribal Sub Plan (TSP) To promote social equity, ₹33,124 crore is allocated for the Special Component Sub Plan (SCSP), and ₹17,056 crore for the Tribal Sub Plan (TSP). These funds are aimed at uplifting marginalized communities through targeted welfare programs. Panchayati Raj and Rural Development The Panchayati Raj sector, crucial for decentralized governance and rural development, receives ₹29,816 crore. This allocation supports rural infrastructure, sanitation, and other essential services, fostering grassroots development. Irrigation Recognizing the importance of water resources for agriculture and drinking water, ₹22,301 crore is earmarked for irrigation projects. This investment will enhance water supply, improve irrigation efficiency, and support water conservation initiatives. Education Education is pivotal for the state's future, with ₹21,292 crore dedicated to this sector. This funding will improve educational infrastructure, enhance teaching quality, and provide scholarships to support students across Telangana. Energy To ensure energy security and meet growing demands, the energy sector is allocated ₹16,410 crore. This will support the development of renewable energy projects, enhance power distribution networks, and promote energy efficiency. Health A healthy populace is a priority, with ₹11,468 crore allocated to the health sector. This funding aims to improve healthcare facilities, expand medical services, and support public health initiatives across the state. Other Notable Allocations Home Affairs: ₹9,564 crore Backward Classes (BC) Welfare: ₹9,200 crore Roads and Buildings (R&B): ₹5,790 crore Civil Supplies: ₹3,836 crore Minority Welfare: ₹3,003 crore Industries: ₹2,762 crore Women and Child Welfare: ₹2,736 crore Gruha Jyothi: ₹2,418 crore Animal Husbandry: ₹1,980 crore Rehabilitation and Reconstruction (RRR): ₹1,525 crore Forests and Environment: ₹1,064 crore Information Technology (IT): ₹774 crore Horticulture: ₹737 crore ₹500 LPG Cylinder Scheme: ₹723 crore Hyderabad-Specific Allocations Hyderabad, the state's capital and a major economic hub, receives special attention in the budget with dedicated funds to enhance its infrastructure and services: Hyderabad Development: ₹10,000 crore Greater Hyderabad Municipal Corporation (GHMC): ₹3,065 crore Hyderabad Metropolitan Development Authority (HMDA): ₹500 crore Water Works: ₹3,385 crore Hyderabad Road Development Authority (HYDRAA): ₹200 crore Metro to Airport: ₹100 crore Outer Ring Road (ORR): ₹200 crore Hyderabad Metro Rail: ₹500 crore Old City Metro: ₹500 crore Multi-Modal Transport System (MMTS): ₹50 crore Musi Riverfront Development: ₹1,500 crore Telangana Budget 2024-25: Political Context This year's budget presentation holds political significance as it marks the first time former Chief Minister K. Chandrashekar Rao (KCR) attends the assembly as the Leader of the Opposition. The shift in political dynamics adds a layer of intrigue and scrutiny to the budgetary process. Deputy Chief Minister and Finance Minister Bhatti Vikramarka, along with Assembly Affairs Minister Duddilla Sridhar Babu, presented the budget to Chief Minister Revanth Reddy. This collaboration underscores the united approach towards the state's financial planning and governance. Conclusion The Telangana budget for 2024-25 reflects the state's vision for comprehensive development and social welfare. With significant investments across key sectors, the budget aims to foster growth, enhance infrastructure, and ensure the well-being of all citizens. As Telangana continues to progress, this budget lays a strong foundation for a prosperous and inclusive future.

Telangana State

July 25, 2024

Telangana Budget 2024 and Allocation Highlights

Telangana Budget 2024-25: Comprehensive Breakdown and Key Allocations The Telangana budget for the fiscal year 2024-25 stands at a substantial…

Telangana Assembly: Heated Debates and Key Budget Proposal Unveiling The Telangana Assembly sessions have been intense, with ruling and opposition members engaging in fierce exchanges. Each side has been highlighting the shortcomings of the other's administration, resulting in sharp criticisms. Deputy CM Bhatti Vikramarka to Present Budget Proposals Today, Deputy Chief Minister Mallu Bhatti Vikramarka, overseeing the Finance Ministry, is set to present the budget proposals in the Assembly. These proposals will be submitted at noon. The budget discussion will commence on the 27th of this month, with several bills scheduled to be introduced on the 29th, 30th, and 31st. Notably, the finance bill is set to be presented on the 31st. First Full Budget by CM Revanth Reddy’s Government This budget holds significant importance as it is the first full-fledged budget presented since the Congress party, led by Chief Minister Revanth Reddy, came to power. Previously, the Revanth government had presented a Vote on Account budget. It is anticipated that substantial funds will be allocated to welfare and development sectors. The Telangana cabinet, presided over by Revanth Reddy, has approved the budget proposals prepared by the Finance Ministry without any modifications. These budget proposals amount to INR 2.95 lakh crore, with a significant portion likely allocated to six guarantees, for which approximately INR 75,000 crore is expected to be set aside. The Agriculture Ministry is also expected to receive a considerable share. KCR’s First Assembly Attendance as Opposition Leader For the first time, former Chief Minister K. Chandrasekhar Rao (KCR) attended the Assembly as the Leader of the Opposition. After the state’s formation, KCR's BRS government was in power twice, and he served as the Chief Minister. Now, as the opposition leader, KCR made his first appearance in the Assembly, accompanied by BRS MLAs. Congress Questions KCR’s Absence from Assembly Since the Congress party came to power in the state, KCR had been staying away from the Assembly sessions, a point that the ruling Congress party has repeatedly raised to put the BRS on the defensive. With the budget presentation today, KCR decided to attend the Assembly. However, it remains to be seen whether KCR will participate in the budget discussion or attend only for the day. Assembly Rules and KCR’s Attendance According to Assembly rules, elected MLAs must attend at least one day of the session within six months. This has fueled speculation about whether KCR's attendance is just to meet this requirement. The opposition leader has been assigned a chamber in the Assembly lobby, which BRS members previously complained about being cramped. It will be interesting to see if KCR will use this chamber. Post-Budget Kaleshwaram Tour for BRS Members After the budget session concludes today, BRS MLAs and MLCs will embark on a tour to Kaleshwaram. They plan to visit the Medigadda and Kannepalli pump houses, integral parts of the Kaleshwaram project. This schedule includes a visit to Medigadda by BRS MLAs and an inspection of the Kannepalli pump house by the party leaders.

Telangana State

July 25, 2024

Ravanth Reddy vs KCR Telangana Budget 2024

Telangana Assembly: Heated Debates and Key Budget Proposal Unveiling, Ravanth Reddy vs KCR Telangana Budget 2024. The Telangana Assembly sessions…

Comprehensive Review of Domestic Money Transfer Framework The Reserve Bank of India (RBI) has recently undertaken a comprehensive review of the Domestic Money Transfer (DMT) framework, reflecting significant advancements in banking infrastructure and digital payment systems. This review, which builds upon the initial framework introduced in 2011, aims to enhance the efficiency and security of money transfer services across the country. Evolution of the Domestic Money Transfer Framework The original DMT framework, introduced by the RBI in October 2011, laid the groundwork for secure and efficient domestic money transfers. Over the years, the banking landscape in India has undergone substantial transformation. The proliferation of banking outlets, advancements in digital payment systems, and streamlined Know Your Customer (KYC) processes have provided users with a plethora of digital options for transferring funds. Key Changes in the Domestic Money Transfer Framework Enhanced Record-Keeping for Cash Pay-out Service To bolster the security and traceability of transactions, remitting banks are now required to obtain and maintain comprehensive records of the beneficiary's name and address. This measure ensures that all cash pay-outs are properly documented and traceable, thereby reducing the risk of fraudulent activities. Strengthened Verification for Cash Pay-in Service In an effort to enhance the verification process for cash pay-ins, remitting banks and their Business Correspondents (BCs) must now register the remitter using a verified cell phone number and a self-certified Officially Valid Document (OVD). This requirement aligns with the Master Direction – Know Your Customer Direction 2016, which has been periodically updated to reflect current best practices. Furthermore, each transaction conducted by the remitter must be validated through an Additional Factor of Authentication (AFA), adding an extra layer of security to the process. Remitting banks and their BCs are also mandated to comply with the provisions of the Income Tax Act, 1961, and related regulations concerning cash deposits. The remitter's details must be included in the Immediate Payment Service (IMPS) or National Electronic Funds Transfer (NEFT) transaction message. Additionally, the transaction message should feature an identifier to distinguish cash-based remittances from other types of fund transfers. Exclusion of Card-to-Card Transfers The updated DMT framework explicitly excludes guidelines on Card-to-Card transfers, which will instead be governed by specific guidelines and approvals granted for such instruments. This exclusion aims to streamline the DMT framework and focus on enhancing the security and efficiency of cash-based remittances. Continuation of Previous Instructions and Transaction Limits While the updated framework introduces several new measures, all other instructions outlined in the original circular dated October 5, 2011, remain applicable. This includes maintaining the limits on the size of transactions, ensuring consistency and continuity in the application of the DMT framework. Effective Date and Legal Basis The revised DMT framework will come into effect on November 1, 2024. This circular is issued under Section 18, read in conjunction with Section 10(2) of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007). This legal foundation underscores the RBI's commitment to maintaining a robust and secure payment system in India. Conclusion The updated Domestic Money Transfer framework represents a significant step forward in enhancing the security, efficiency, and traceability of money transfer services in India. By incorporating advanced verification measures, comprehensive record-keeping requirements, and streamlined guidelines, the RBI aims to foster a more secure and user-friendly payment ecosystem. As the new framework comes into effect, stakeholders, including banks and payment system operators, must ensure compliance with the updated guidelines to facilitate seamless and secure domestic money transfers.

NEWS

July 25, 2024

IIBF Mandatory for VLEs, RBI notifications

Comprehensive Review of Domestic Money Transfer Framework IIBF Mandatory for VLEs, RBI notifications. The Reserve Bank of India (RBI) has…

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