Revenue collections continue to dip in Telangana
Telangana is facing a significant dip in revenue collections, with receipts for the current fiscal year lagging behind last year's collections.
Hyderabad: Telangana is facing a significant dip in revenue collections, with receipts for the current fiscal year lagging behind last year’s collections. By the end of September, total revenue receipts stood at Rs 90,844.45 crore, marking a decline from Rs 99,775.12 crore collected during the same period in the previous year. This constitutes only 41.06 per cent of the annual target of Rs 2,21,242.23 crore, compared to 46.07 per cent achieved last year during the same timeframe.
As per the latest report released by the Comptroller and Auditor General, tax revenue of Telangana remains a major contributor at Rs 82,135.38 crore, 49.96 per cent of the budget estimates for current fiscal, marginally lower than last year’s 50.74 per cent. While Goods and Services Tax (GST) collections stood at Rs 29,526.14 crore (50.39 per cent of the target), this was a slight dip from 51.84 per cent last year. Sales tax collections showed improvement at 55.59 per cent, up from 43.88 per cent.
A sharp dip was observed in excise duties, which recorded 42.63 per cent of the target, a significant drop from last year’s 68.88 per cent. In terms of Stamps and Registrations, there has been a marginal increase from Rs 8,227.86 crore i.e. 44.47 per cent of annual targets till September last year to Rs 8,359.97 crore which is 45.86 per cent for the same period this year.
The State’s Share of union Taxes turned out to be a major saviour for the State with Rs 10,159.63 crore which is 55.26 per cent of the budget estimates. Last year, the State’s Share in Union Taxes stood at Rs 7,139.84 crore.
Non-tax revenues plummeted to just 13.66 per cent of the target, a steep drop from 81.36 per cent during the corresponding period last year. The Grants-in-Aid from the Central government stood at Rs 3,899.74 crore which is 18 per cent of the target, a notable rise compared to 9.3 per cent last year but still far from meeting expectations.
During the period, overall capital receipts have increased especially with borrowings standing at Rs 35,120.91 crore compared to Rs 33,378.34 crore borrowed by September last year.
On the expenditure side, revenue expenditure accounted for Rs 1,06,048.40 crore (48 per cent of the budgeted Rs 2,20,944.81 crore), consistent with last year’s 48.35 per cent. However, capital expenditure showed a decline, reaching only 53.01 per cent of the target compared to 69.8 per cent last year. In numbers, the capital expenditure which largely comprises expenditure on infrastructure and development projects was Rs 17,750.89 crore during this fiscal, compared to a whopping Rs 26,195 crore spent till September last year,
The drop in revenue collections and capital expenditure coupled with a sharp rise in borrowings, pose a challenge for the State government in fiscal management. Economists suggest the State may need to reassess its revenue generation strategies and prioritise essential expenditures to maintain fiscal stability.
