Telangana revenue falls short of budget estimates

The decrease in revenue receipts is mainly due to fall in State’s share in Central taxes. State Chief Secretary Somesh Kumar, however, claims that the revenues were showing an upward trend despite economic slowdown

HYDERABAD: The revenue receipts of the State have fallen short of the Budget 2019-20 estimates. Till January, the State realised Rs 79,488.24 crore under revenue receipts against the Budget 2019-20 estimates of Rs 1,13,099 crore. This is just 70.28 per cent of the target.

On an average, the monthly revenue receipts are around Rs 8,000 crore, if one goes by the the latest figures. It means, another Rs 16,000 crore could be realised at the most in February and March. In such case, the total revenue receipts will touch up to a maximum of Rs 96,000 crore, a realisation of 84 per cent of the Budget estimates. The decrease in revenue receipts is mainly due to fall in the State’s share in Central taxes.

The non-tax revenue accrued up to January is Rs 3,456 crore against the target of Rs 15,875 crore which is just 21.78 per cent. With the State’s revenues are far less than the estimates, the State government is unable to implement its election assurance of crop loan waiver till date.

According to latest monthly unaudited provisional figures of the Comptroller and Auditor General (CAG), of the total revenue receipts, the tax receipts too fell short of the targets. The CAG stated that the State’s tax revenue up to January is Rs 67,574.73 crore against the estimated tax revenue of Rs 89,047.14 crore. The total tax elections are 75.89 pc of the target up to January.

As revenues decreased in 2019-20, due to the economic slowdown, the borrowings exceeded the estimates. The borrowings and other liabilities of the State stood at Rs 26,383.82 crore against the estimates of Rs 24,081.75 crore and the target achieved is 109.56 pc.

These factors indicate that revised estimates of the Budget- 2019-20 may not cross even 1.20 lakh mark against the Budget estimates of Rs 1.46 lakh crore. The Finance Minister would present the revised estimates of 2019-20 and also Budget for 2020-21 this week in the Assembly. With very less revenues than expectations up to January, it will have its impact on the size of Budget 2020-21.

According to the CAG, the fiscal deficit is Rs 26,383 crore up to January than the Budget estimates of Rs 24,081 crore. Primary deficit is Rs 15,572.45 crore against the estimate of Rs  9,507.02 crore, a 163.80 per cent more than the estimates.

Chief Secretary Somesh Kumar, however, claimed that the revenues were showing an upward trend despite economic slowdown.

“State’s tax revenues are showing an uptick,” he said and attributed it to the  deft handling by Chief Minister K Chandrasekhar Rao. “Rest of the country is affected by slowdown but not Telangana,” Somesh Kumar said.

Waiver for crop loans soon: KTR

HYDERABAD: TRS working president and IT Minister KT Rama Rao has said that the State government would implement crop loan waiver soon.Addressing the newly elected District Cooperative Central Bank (DCCB) chairpersons here on Monday, Rama Rao said that despite economic slowdown in the country, Chief Minister K Chandrasekhar Rao was committed to implement crop loan waiver.  “The Chief Minister has already issued orders to this effect,’’ KTR said, adding that the CM was a farmer, which was why several welfare schemes were taken up in the State.