Zero percent GST growth: Telangana hits new low under Congress regime
Experts have raised concerns over the stagnation, calling it a troubling indicator of an economic slowdown under the Congress-led government. They caution that it points to a broader crisis affecting key sectors of the State’s economy. Telangana recorded a revenue of ₹5,401 crore in March 2025, compared to ₹5,399 crore in March 2024 — a marginal increase that has effectively stalled the growth momentum witnessed during the BRS regime.
Updated On - 7 April 2025, 02:40 PM
Hyderabad: The latest GST data released by the Centre has raised red flags over Telangana’s economic health, with the State recording zero per cent growth in GST collections for March 2025 compared to the same month last year. In stark contrast, the national average growth in GST collections stood at 8.79 per cent.
Experts have termed this stagnation a worrying sign of an economic slowdown under the Congress-led government, warning that it reflects a deeper crisis across key sectors of the State’s economy. While Telangana collected Rs 5,401 crore in March 2025 against Rs 5,399 crore in March 2024, the negligible difference has effectively halted the upward trajectory seen under the BRS regime.
For nearly a decade Since state formation, excluding the COVID-19 period, Telangana witnessed consistent GST growth especially in March which marks the conclusion of the financial year. During the BRS tenure, the State’s average GST growth remained strong. However, since the Congress government took charge, not only has the growth slowed, but related revenue streams like Stamps and Registration have also slumped.
In January 2025, the State posted a 10 per cent GST growth (Rs 6,017 crore against Rs 5,448 crore in January 2024), which dropped sharply to just one per cent in February 2025 compared to previous year. Only Andhra Pradesh performed worse than Telangana among major States, registering a one per cent decline in March GST collections.
Economists are now concerned that the March flatline could signal prolonged stagnation if corrective measures are not initiated. They blame the dip in GST revenue on hasty and ill-conceived decisions by the State government including the controversial HYDRAA system, stalled infrastructure projects like the Pharma City, and disruptions caused by the Musi Riverfront development. Sectors such as real estate, handlooms, agriculture, and services have reportedly been hit hard, leading to a drop in both consumer and commercial activity.
With GST being the State’s largest revenue contributor, experts caution that any further slump could impact welfare spending and development initiatives. The lack of fiscal buoyancy now poses a significant challenge to Chief Minister A Revanth Reddy’s administration, which has already drawn criticism for its economic handling.
GST revenue in March since 2019 with growth rate over previous year
2019 – Rs 3,897 crore (9 per cent growth rate compared to 2018)
2020 – Rs 3,563 crore (-9 per cent)
2021 – Rs 4,166 crore (17 per cent)
2022 – Rs 4,242 crore (2 per cent)
2023 – Rs 4,804 crore (13.25 per cent)
2024 – Rs 5,399 crore (12 per cent)
2025 – Rs 5,401 crore (0 per cent)