Will the revision of land market values be the next decision of the State government to mop up additional resources and offset the shortfall in revenue?
The market prices of lands have not been revised after formation of Telangana and the last revision was effected on April 1, 2013. One of the suggestions for mobilisation of resources was to revise the market value of different categories of land to increase the revenue from the Registration and Stamps Department when the State is staring at revenue deficit in the current financial year 2019-20. However, the decision has to be taken at the highest level, according to sources.
The recent State Cabinet meeting discussed at length the financial situation in the State and shortfall of State own tax revenue due to steep fall in GST growth rate from above 14% to below 3%. The State became entitled this fiscal for compensation under the GST Act to compensate the States if their growth rate was less than 14% for a period of five years from the inception of new tax regime.
Sale of land
The overall shortfall in revenue for the State so far is about ₹20,000 crore, including ₹10,000 crore estimated to be raised from auction of government lands. However, auction of government lands could not be taken up as planned due to court stay on 300 acres of Kokapet lands and other factors besides the economic slowdown.
Increase in liquor prices and registration charges for land transactions were the two key proposals submitted for the consideration of the Cabinet in its last meeting.
Telangana government has gone ahead and increased the prices of liquor. The average 20% hike effected across the brands of liquor on Monday is expected to yield the State ₹4,000 crore to ₹5,000 crore. The revenue from excise for the 2019-20 was estimated at ₹20,000 crore, the year may end with ₹24,000 crore to ₹25,000 crore with the latest hike in prices. Even after the hike in the liquor prices, they would still be lower than that of neighbouring Andhra Pradesh, sources said.
Giving some relief, Centre on Monday released GST compensation dues to the States and Telangana got ₹1,036 crore though it represented to the Centre that ₹1,700 crore was due to it and another ₹2,800 crore was pending under the IGST settlement.
