The State government has estimated its overall revenue shortfall at ₹ 52,750 crore in the current financial year under COVID-19 impact.
Senior finance officials have suggested to government that it was inevitable to alter or amend budget proposals for the year keeping in view the steep decline in revenues.
The suggestion was given at a meeting presided by Chief Minister K. Chandrasekhar Rao on mid-term review of the budget in the backdrop of a range of receivables of the government not happening due to COVID. Chief Secretary Somesh Kumar, Principal Finance Secretary K. Ramakrishna Rao and other senior officials were present.
A release later said the tax and non-tax revenue of the State government for the seven-month period this financial year from April to October-end was a mere ₹ 33,704 crore against ₹ 39,608 crore for the corresponding period last year. Actually, the budget proposals for this year were prepared on the assumption that the revenue growth rate will be 15 %. But, not only did the growth rate take place, there was a negative collection of revenues compared to last year.
The budget was prepared with an estimated ₹ 67,608 crore revenue from taxes and non-tax sources. However, the collections were likely to be only ₹ 33,704 crore. Thus, the shortfall in State’s own revenue would be ₹ 33,904 crore.
The share of State in Central taxes generated here will also go down drastically as a result. The Union budget had proposed State’s share at ₹ 16,727 crore which in effect meant that Telangana should have got ₹ 8,363 crore by now. But, Telangana got only ₹ 6,339 crore, a shortfall of ₹ 2,024 crore. At this rate, the receipts at the end of the year were likely to be only ₹ 11,898 crore. The State will end up losing ₹ 4,829 crore in Central taxes.
In addition, the State was supposed to get ₹ 9,725 crore from Centrally sponsored schemes this year. Of the ₹ 5,673 crore due till October-end, the State got only ₹4,592 crore which was ₹ 1,081 crore less. It was likely that the State will get ₹ 8,923 crore by year end, marking a ₹ 802 crore shortfall in this segment.
Mr. Rao asked officials to redraft the budget plan by rearranging the priorities of government keeping in view the overall shortfall of ₹ 52,750 crore.
