With several major irrigation projects still under implementation such as Kaleshwaram, Sitaram, Dindi, Devdula, Palamuru-Rangareddy, the budget allocation for the sector has been increased by ₹4,193 crore with a marginal increase in capital outlay.
The state government has allocated Rs 26,885 crore for irrigation for 2023-24 as against Rs 22,692 crore allocated last year. Restrictions imposed on Telangana by the Center in borrowing limits under the Fiscal Responsibility and Budget Management Act from the current financial year (2022-23) onwards have played a major hurdle in the progress of several projects being implemented with loans.
According to official sources, barely Rs 10,000 crore of capital expenditure (approved bills) was spent on the implementation of ongoing projects till December-end with an allocation of Rs 9,910 crore for capital works in the 2022-23 budget. Bills worth over ₹7,500 crore were pending as on December 15, 2022. The outlay of capital expenditure on irrigation has been kept at Rs 10,014 crore in 2023-24.
The ban on borrowing from banks had badly hit capital expenditure in the sector as hardly Rs 4,000 crore had been disbursed till December 15 with the help of loans. It said that the bulk of the budgetary allocation for 2023-24 would go to salaries and loans. Servicing has already started for Kaleshwaram, Palamuru-Rangareddy, Sitaram, Devdulu, SRSP flood flow canal and others as repayment of borrowed funds.
However, the capital expenditure incurred on the irrigation sector in completion of pending projects, partial activation of ongoing projects, restoration of minor irrigation tanks under the Mission Kakatiya program and construction of check-dams has not only resulted in direct (canal) irrigation. Efficiency has not only improved, but also the ground water table has improved significantly, enabling farmers to use the resources to increase the extent of irrigated farming since 2014-15.
“Since the formation of the state in June 2014, the state government has spent ₹1,60,979 crore on irrigation from 2014-15 to 2022-23, thereby increasing the Gross Irrigated Area (GIA) by 117% – 2014-15 From 62.48 lakh acres in. 135.6 lakh acres in 2021-22) including new irrigation potential of 74.32 lakh acres”, explains the socio-economic outlook for 2023.
As a result, total agriculture production is expected to increase from 232 lakh tonnes in 2014-15 to 326 lakh tonnes in 2021-22.