Revenue receipts of Telangana government continue to bely expectations after five months of current financial year

State revenue receipts fall short of government expectations, with borrowings taking the lead in overall revenue.

The overall revenue receipts of the State continue to bely expectations of the government.

The State registered overall revenue receipts of ₹61,618 crore at the end of August, just 27.85 % of ₹2.21 lakh crore projected in the budget estimates for the current fiscal. Tax revenue during the five-month period was shade better at ₹57,722 crore, 35.11 % of ₹1.64 lakh crore projected in the budget estimates.

Of the overall revenue, receipts through borrowings and other liabilities took the lion’s share standing at ₹29,466 crore till August-end. The State projected borrowings and other liabilities for the fiscal at ₹49,255 crore and is left with an option to borrow less than ₹20,000 crore with seven months still to go.

The actuals under non-tax revenue and grants-in-aid and contributions continued to be much lower than the expectations. The non-tax revenue was projected at ₹35,208 crore in the budget estimates and the actual till August end was a mere ₹1,449 crore, 4.12 % achievement while that under grants-in-aid and contributions was ₹2,447 crore, 11.31 % of ₹21,636 crore estimated in the budget.

Revenue through sales tax was impressive at ₹13,487 crore, 40.32 % of the ₹33,449 crore of budget estimates while that from Goods and Services Tax and Stamps and Registration was ₹20,500 crore and ₹6,390 crore respectively at the end of August. Earnings in the form of State Excise duties was pegged at ₹7,806 crore, 30.48 % of ₹25,617 crore estimated in the budget while the State’s share of Central taxes stood at ₹6,220 crore (33.83 % of budget estimates of ₹18,384 crore).

On the expenditure front, the State incurred ₹10,497 crore on account of interest payment, 59.21 % of ₹17,729 crore projected for the year and ₹18,152 crore on salaries and wages amounting to 45.33 % of the ₹40,041 crore projected for the year. Payments in the form of pensions was on the higher side at ₹7,165 crore, 61.55 % of ₹11,641 crore projected for the entire fiscal.

The State had revenue deficit of ₹15,521 crore and fiscal deficit of ₹29,449 crore at the end of August, according to the provisional report released by the Comptroller and Auditor General of India. The primary deficit during the period stood at ₹18,952 crore.