Telangana’s total revenue receipts at 54.38% at the end of Q3 with three more months to go

The Telangana State continues its efforts to wriggle out of the burden cast by interest payment on the long-term debts, even as it achieved overall revenue receipts of ₹1.24 lakh crore, 54.38% of the ₹2.24 lakh crore projected for the financial year in the budget estimates.

More than half of the revenue receipts was on account of borrowings and other liabilities which stood at ₹65,930 crore during the period. With just three months left for the end of the fiscal year, the State has a long way to go to achieve the projected revenue receipts. Tax revenue at the end of the third quarter was ₹1.13 lakh crore, 65.02% of the ₹1.75 lakh crore of the budget estimates and non-tax revenue remained sluggish at ₹7,120 crore, 22.52% of the ₹31,618 crore of the budget estimates.

Revenue through grants in aid and contributions too remained significantly low at ₹3,805 crore, a meagre 16.7% of the ₹22,782 crore projected for the fiscal. Revenue through goods and services tax at the end of nine months was ₹39,004 crore against the budget estimates of ₹59,704 crore, marking 65.33% achievement and that through Stamps and Registration was ₹11,304 crore, 59.22% of the projected ₹19,807 crore.

Sales Tax collections at the end of the third quarter stood at ₹25,126 crore, 67.07% of ₹37,463 crore and the State Excise duties fetched ₹17,507 crore, 63.38% of the budget estimates of ₹27,623 crore. State Excise duties remained relatively lower in spite of expectations of a significant rise following hike in licence fee of retail sales outlets by ₹1 lakh each. Receipts in the form of State’s share of union taxes were impressive at ₹14,982 crore, 70.69% of the ₹21,195 crore projected for the year while revenue through other taxes and duties too remained stable at ₹6,059 crore at the end of the third quarter.

On the expenditure front, interest payment continued to be a major component at ₹21,454 crore, 110.77% of ₹19,369 crore of budget estimates indicating that the State has been paying ₹2,383 crore interest a month on an average. The State is likely to end up incurring around ₹25,000 crore on interest payment at the end of the fiscal.

Expenditure on account of pension payment was on the higher side at ₹15,126 crore, 107.76% of ₹13,109 crore of the budget estimates with three more months to go. Expenditure on salaries/wages at the end of the third quarter was ₹35,746 crore, 80.37% of ₹44,478 crore of the budget estimates, according to the provisional figures submitted to the Comptroller and Auditor General of India.

The State reported a revenue deficit of ₹9,601 crore against the surplus of ₹2,738 crore projected in the budget estimates at the end of the third quarter and the fiscal deficit was at ₹65,930 crore while the primary deficit stood at ₹44,476 crore, 128.39% of the ₹34,640 crore of budget estimates.