Telangana, with a population of 39.64 million and covering an area of 112,077 square kilometers, constitutes 3.41% of India’s total geographical area, ranking as the 11th-largest state. In terms of population, it holds the 12th position. The Gross Domestic Product (GDP) for Telangana in the fiscal year 2023-24 stands at Rs. 14 lakh crore, reflecting a 6.7% increase compared to the previous year. Telangana distinguishes itself with an impressive growth rate of 15.6%, surpassing India’s average GSDP growth of around 6%.
A significant portion of Telangana’s government expenditure is directed towards procurement, prompting an examination of procurement expenses. The primary funding source for procurement is the budget, supplemented by financial support from Public Sector Undertaking (PSU) entities. In the fiscal year 2023-24, the government budget for Telangana amounts to Rs.2,77,690 crore, marking a substantial 23% increase from the previous fiscal year. Eighty-two PSUs within Telangana generate revenue for procurement, project implementation, and service acquisition. Noteworthy PSUs include Telangana State Power Generation Corporation Limited, Telangana State Warehousing Corporation, and Telangana State Power Finance Corporation Limited.
Within the total budget, Rs.59,831 crore is allocated to committed expenditure, constituting 21.54%. This covers interest payments, salaries, pensions, and subsidies. The remaining 78.46% is dedicated to procurement, supplemented by contributions from PSUs. Assuming procurement constitutes 10% of the GDP, the projected expenditure is approximately Rs.1,40,000 crore.
In the overall budget, a capital outlay of Rs.37,525 crore is designated for the fiscal year 2023-24. This covers expenses related to equipment, machinery, land, buildings, and civil works for infrastructure projects. The current capital outlay represents a notable 39% increase from the previous year. The government may secure loans from entities like the World Bank and the Asian Development Bank for major initiatives.
To ensure transparency, the government is required to adopt an open tendering process for procurement, widely publishing these tenders across numerous web portals. As of December 23rd, 2023, Tendersniper portal indicates over 3354 live tenders in Telangana. Analyzing these tenders offers insights into the government’s spending priorities. The highest expenditure area in Telangana is road construction tenders hold the highest ranking among procurement categories, constituting 5.08% (162 out of 3354) of the published live tenders. The subsequent higher-ranked procurement categories include cc road with 71 tenders, Inter Segment Purchase with 52 tenders, and 49 tenders for Road Repair.
The Telangana government allocates substantial funds annually, amounting to tens of thousands of crores, for the procurement of diverse goods, works, and services. This procurement is carried out through an open tendering process, where eligible vendors or suppliers can secure the tender by submitting competitive prices and strong technical proposals.
