Telangana’s annual debt has exceeded its budget estimates by a wide margin for the first time in recent years, standing at Rs 40,852.51 crore as of January this fiscal year as against the budget estimation of Rs 38,234.94 crore for the entire financial year
Published Date – 6 March 2024, 11:30 PM
Hyderabad: Telangana‘s annual debt has exceeded its budget estimates by a wide margin for the first time in recent years, standing at Rs.40,852.51 crore as of January this fiscal year as against the budget estimation of Rs.38,234.94 crore for the entire financial year. Despite Congress leaders vehemently opposing borrowings, the State government’s debt has already surpassed estimations two months prior to conclusion of the financial year.
The State surpassed the budget estimations earlier by 24.17 percent in 2019-20 and 37.5 in 2020-21 during the post Covid-19 period followed by 4.79 per cent in 2021-22. The next fiscal, in 2022-23, the annual debts were restricted to just 61.57 percent of the budget estimations. However, during the current fiscal, the borrowings have already overshot the budget estimations by 6.85 per cent.
According to Reserve Bank of India (RBI) records, the State government plans to raise an additional Rs.13,000 crore through the auction of securities in the last quarter of the current financial year. Having already raised Rs.4,316.5 crore in January, the total debt is anticipated to increase by at least another Rs.8,000 crore.
Surprisingly, the Congress, previously critical of rising debts under the BRS regime, has proposed for availing open market loans amounting to an estimated Rs.59,625.21 crore in the State budget for the 2024-25 financial year. Interestingly, this is the highest loan amount sought by Telangana in a single year since its formation. Quite ironic too, given the previous stance of the Congress.
Meanwhile, the State’s own tax revenue has surged by Rs.8,244.75 crore till January this year compared to the corresponding period last year. Telangana collected a total of Rs.1,26,617 crore during the last financial year of which Rs.1,02,197 crore was collected till January. Despite challenges, Telangana’s tax revenue till January this year stands at Rs.1,10,442 crore, indicating an approximately eight percent increase.
Key revenue sources include Rs.37,995.69 crore through GST, Rs.24,915.69 crore through Sales Tax, Rs.17,964.26 crore through excise duties, Rs.11,698.55 crore through Stamps and Registrations, and an additional Rs.11,290.8 crore from the Centre through tax devolution. Non-tax revenue is around Rs.20,572.79 crore, slightly below the budget estimate of Rs.22,808.31 crore. Grants-in-aid from the Centre were significantly lower at Rs.5,844.63 crore compared to the budget estimate of Rs.41,259.17 crore.
Notably, the State has realized nearly 90.58 per cent of its budget allocations for capital expenditure in the current fiscal year, spending Rs.33,991.72 crore against the allocated Rs.37,524.7 crore, indicating a robust and growing economy.
