Telangana posts just 5.1 per cent annual growth in GST collections

This comes shortly after it was revealed that the State posted zero per cent growth in GST collections for March 2025 compared to the same month last year

Hyderabad: In a clear indication of a sharp economic slowdown in the 2024-25 financial year, Telangana recorded just 5.1 per cent growth, well below the national average of 10 per cent. This comes shortly after it was revealed that the State posted zero per cent growth in GST collections for March 2025 compared to the same month last year.

According to official figures, Telangana’s total GST collections from April 2024 to March 2025 stood at Rs.62,987 crore. Central GST grew by a modest 6.6 percent while State GST saw a paltry 3.7 percent increase compared to last fiscal. This is a significant drop from the 10 percent GST growth recorded in 2023-24.

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The dismal numbers contradict the Telangana government’s recent claims. During the budget session, Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka claimed a 12.3 percent GST growth in the State. However, senior BRS leader and former Finance Minister T Harish Rao had cautioned that real growth may hover around 5.5 percent. “Now it’s official; it’s even lower,” he posted on X.

Calling out the State government’s failed priorities, Harish Rao blamed the slump on delayed rural spending and lack of focus on productive investment. He pointed to the Rs.12,000 crore pending Rythu Bharosa payments, misguided projects like the HYDRAA and Musi Riverfront beautification drives, and the scrapping of Pharma City as key reasons for weakening business confidence.

“When people have no money in their hands, how will consumption rise? How will GST grow?” he questioned, stating that the Finance Minister has not just misled the Assembly, but also misled every hardworking citizen of Telangana. He also noted that Telangana has never witnessed such low GST growth except during the COVID-19 lockdown, calling the current performance a matter of shame and demanding accountability.

Telangana records just 0% GST growth in March 2025 and only 5.1% growth in FY 2024-25, far below the national average of 10%.

This completely exposes the @Bhatti_Mallu Dy CM and Finance Minister’s false claim in the Assembly of 12.3% GST growth. I had earlier cautioned that the… pic.twitter.com/v4XuRc3O2k

— Harish Rao Thanneeru (@BRSHarish) April 8, 2025