Hyderabad.23.02.2025: The Congress government in Telangana is struggling with a growing revenue deficit due to poor collections and rising debt. Officials are making urgent efforts to manage the financial crisis.
Over the past three years, Telangana collected an average of 77% of its expected revenue by March-end. The State Own Tax Revenue (SOTR) collection was around 97.26% during this period. With less than two months left in the financial year, the government is working hard to maintain previous tax collection levels.
To boost revenue, the government has offered a 25% discount on the Layout Regularisation Scheme (LRS) fee for payments made before March 31. It is also aggressively collecting pending taxes, including GST, commercial tax, and sales tax. Authorities are focusing on recovering property tax, traffic fines, electricity and water bills, and licence fees. A one-time settlement scheme is also being considered to clear outstanding dues.
The government is planning to increase excise duties, leading to higher liquor prices. The rise in beer prices alone is expected to generate an additional Rs 300 crore per month. However, efforts to secure overdue funds from the central government have seen little success.
Departments have been informally told to clear only emergency bills. Of the Rs 1,000 crore allocated for employee welfare, medical expenses, and other needs, only Rs 300 crore has been spent, with the remaining funds redirected elsewhere.
Despite the financial crisis, the government has not yet introduced austerity measures. Ministers continue to use helicopters for visits, raising concerns over financial discipline. Previous Chief Ministers like N Chandrababu Naidu, YS Rajasekhara Reddy, and K Chandrashekhar Rao implemented cost-cutting measures during difficult times.
This year, Telangana’s financial situation has worsened. The state has collected only Rs 1,23,815 crore, which is 55.96% of the budget estimate of Rs 2,21,242 crore. Last year, the collection was higher at 63.20% during the same period.
In contrast, the previous BRS government maintained strong SOTR collections, achieving 102.89% in 2021-22, 100.01% in 2022-23, and 88.88% in 2023-24. It remains uncertain if the current administration can meet previous targets.
With the ongoing crisis, the government must find effective solutions to stabilize Telangana’s economy.
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