Telangana’s revenue deficit climbed to over ₹ 5,000 crore in the very first month of this current financial year which climaxed with the initial phase of lockdown in the State.
The State’s revenue deficit was ₹ 5,178.96 crore which was minus 115.55% of the budget estimates at the end of April as disclosed in a recent report of the Comptroller and Auditor General of India
The total revenue receipts in the month from various tax and non-tax revenue sources and grant-in-aid were ₹ 3,377.61 crore while revenue expenditure was ₹ 8,556.57 crore, contributing to the aggregate deficit of ₹ 5,178.96 crore.
The receipts of the government took a huge beating in collection of tax revenue which was a mere ₹ 1,700 crore against ₹ 5,226.90 crore in April last year. The amount included devolution by Centre of ₹ 620.38 crore as State’s share of Union taxes. The receipts could have been much worse without the grant-in-aid and contributions released by Centre to the tune of ₹ 1,402 crore. Generally, the aid is released in later part of the year but the Centre made an exception this time due to lockdown which impacted the finances of State governments heavily.
Sources said the expenditure of the government, on the other hand, was too high to match the receipts, particularly on revenue account which consisted of unforeseen payments on account of COVID. The expenditure was ₹ 4,602.80 crore against ₹ 1,585.73 crore in April last year. Interest payments also rose by about ₹ 350 crore but the salary bill for the staff was cut short by ₹ 300 crore with prior notice to employees. The pensioners also bore the brunt as they had to take a cut of ₹ 470 crore.
The government, however, increased the expenditure on subsidies by ₹ 500 crore over last year. Overall, the revenue expenditure on social sector caused by payment of ₹ 1,500 per family for loss of wages to poor and rice distribution was ₹ 5,174 crore.
Receipts from Goods and Service Tax were ₹ 776.75 crore which was nearly half of last year. The revenues from stamps and registration, land revenue, sales tax and State excise duties also plummeted steeply, the C&AG report noted.
