The Telangana government accumulated a revenue deficit of 317.10% in the pandemic through the first quarter of this financial year as per figures up to June 30 put out by the Comptroller and Auditor General of India. The deficit for the corresponding period last year was just 46.18%.
The revenue deficit against Budget estimates of the State for the year jumped in April itself to 115.55% (in April last year it was 0.03%) and 259.44% in May (63.04% last year) and then to 317.10% in June.
It was observed that the deficit was ₹ 14,212 crore with the expenditure far in excess of tax and non-tax revenues as well as grants-in-aid. While the government booked an expenditure of ₹ 28,923 crore, the revenue receipts were only ₹ 14,710 crore.
The receipts were just 10.28% of the budgeted estimates for the quarter and expenditure 20.86%. The receipts were 29.42% and expenditure 17.96% for the corresponding period last year. The higher expenditure this time was attributed to payment of subsidies like ₹1,500 and free rice for poor families who lost their wage income due to pandemic. The government spent ₹ 2,438 crore on subsidies, a component which was zero in the first quarter last year.
In all the heads of tax revenues, the collections by government were far less than last year.
GST component
For instance, the GST which is the biggest component of tax revenue was only ₹3,956 crore against the budget estimate of ₹32,671 crore (12.11%).
Revenue from stamps and registration and excise also dipped sharply due to closure of land transactions and liquor shops respectively for nearly one-and-a-half months. The other commercial establishments, except malls, were allowed to reopen in May end but the sales tax collections did not look up. They were only 8.98% against 20.20% last year.
Senior officials said the tax revenues picked up significantly in June when the commercial activity resumed full length, so much so it surpassed figures for the corresponding month last year by nearly ₹1,900 crore but the cascading effect of April and May shadowed the performance in the quarter. The tax revenues were ₹11,893 crore against ₹15,540 crore for the quarter last year.
Interestingly, the coffers of the State government were boosted by Central grants and voluntary contributions, particularly in April and May. As a result, they totalled up to ₹ 1,970 crore out of the total revenue receipts of ₹14,710 crore. The grants were a mere ₹214 crore last year.
On the expenditure front comprising interest payments, salaries, wages, pensions and subsidies, the government was liberal in releasing the entire amount. Except salaries which were slashed for the staff to shore up resources, all the other payments were higher than last year. The social security pensions for the aged, widows and other categories of people were higher by ₹1,250 crore and subsidies ₹808 crore.
.png?w=600)
