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TGPSC Group III study materials
TGPSC Group III study resources

TGPSC Group III: Economy and Development of India and Telangana

TGPSC Group III · Work through your exam, one topic at a time.

All guide sections

Economy and Development of India and Telangana

Domain 4: Economy and Development of India and Telangana

This domain tests planning, budgets, welfare schemes, agriculture and industry in India and Telangana. Numerical questions on deficits and scheme questions are common, so learn definitions and then apply them to a small example.

Core rules and concepts

  • Planning: the Planning Commission was set up in 1950 and Five-Year Plans ran from 1951 to 2017. NITI Aayog replaced the Planning Commission in 2015 and works through cooperative and competitive federalism, indicators and policy advice.
  • Budget: revenue receipts are tax and non-tax receipts that do not create liabilities; capital receipts include borrowings and disinvestment. Revenue expenditure does not create assets; capital expenditure does. Fiscal deficit is total expenditure minus total receipts excluding borrowings. Revenue deficit is revenue expenditure minus revenue receipts. Primary deficit is fiscal deficit minus interest payments.
  • Welfare: India uses DBT, MGNREGA, PM-KISAN and Ayushman Bharat. Telangana schemes include Rythu Bandhu investment support, Rythu Bima life insurance, Mission Bhagiratha drinking water, Mission Kakatiya tank restoration, Kalyana Lakshmi and 2BHK housing.
  • Agriculture and industry: MSP, crop insurance, irrigation and diversification matter for farm incomes; Telangana uses TS-iPASS for industrial clearances and promotes IT, pharma, textiles and food processing.

Worked example

A government has total expenditure of 500 crore, revenue receipts of 350 crore, capital receipts other than borrowings of 50 crore and borrowings of 100 crore. Fiscal deficit = 500 - (350 + 50) = 100 crore. If revenue expenditure is 400 crore, revenue deficit = 400 - 350 = 50 crore. If interest payments are 30 crore, primary deficit = 100 - 30 = 70 crore.

Traps that cost marks

Do not count borrowings as revenue receipts. Do not call disinvestment revenue expenditure. Do not confuse fiscal deficit with primary deficit. In scheme questions, match the scheme to its level, purpose and beneficiary group.