Telangana finances looking up

June saw earnings of Rs 5,962.63 crore from major sectors

By Author  |  Published: 7th Jul 2020  12:21 amUpdated: 7th Jul 2020  12:42 am

Hyderabad: Telangana has shown impressive signs of recovery from the three-month lockdown that virtually put the State’s economy in suspended animation.

While sectors such as commercial taxes, excise and mining registered better numbers compared with the corresponding period in the last financial year, registration and road taxes are lagging behind.

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The GST compensation of Rs 3,975 crore that the Union government owes the State has only been partially reimbursed, with Rs 1,800 crore yet to reach the State exchequer.

With the State opening up commercial activity after the Covid-induced lockdown, the State’s income is slowly picking up, and June witnessed earnings of Rs 5,962.63 crore, against 4,902 crore in June last year, recording an increase of Rs 1,060.38 crore.

Under commercial taxes, the revenue generated this June was Rs 3,766.87 crore, against Rs 3,430.24 crore in June last year. Excise earned an impressive Rs 1,461.54 crore this June compared with Rs 678.02 crore last June. Registration and Stamps lagged behind with Rs 457.10 crore compared with Rs 597.20 crore last year.

Mining picked up fast with Rs 277.12 crore compared with Rs 196.79 crore of June 2019. Excise and Mining achieved 115 per cent and 40 per cent increase respectively this June, following the lifting of the lockdown.

“While the recovery is encouraging, registration and road tax collections have to pick up. I can only say that there is partial improvement, such as income from registration which was only around Rs 30 crore in May, jumped to Rs 457.10 crore in June. The economy has to recover completely,” Finance Minister T Harish Rao told Telangana Today. Harish Rao who urged the Centre to release GST compensation Rs 3,975 crore and Rs 2,800 crore under IGST in June while participating in a video conference in 40th GST Council meeting said the State was still to receive Rs 1,800 crore under the head of compensation.

“No doubt certain sectors opened up after prolonged lockdown, but the major money spinners such as shopping malls, cine theatres, pubs, restaurants and transportation sector have not opened yet,” he said adding.

In addition to the part payments in GST and IGST to the State by Centre and the Rs 4,500 crore that the State earned by selling bonds helped Telangana to declare full payment of salaries due to the government employees and pensioners for June. With the IT sector and real estate showing resilience to the post lockdown shortcomings, the State economy is firmly on the road to recovery.

 


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