Telangana Govt expects Rs 48,620 Cr revenues

Hyderabad, Nov 28 (INN): The Telangana State is expecting a revenue of about Rs 48,620 crore during the financial year 2014-15. This include Rs 35,378 crore Tax Revenue and Rs 13,242 crore Non-Tax Revenues.

The average growth rate of economy of the Telangana State is 9.83 per cent from 2004-05 to 2013-14 at constant prices (2004-05). The growth of the GSDP for the year 2014-15 is assumed at 15 per cent in nominal terms over the preceding year.

This was disclosed by Finance Minister Etala Rajender on the statement on fiscal policy tabled in the State Legislative Assembly on Friday. "The GSDP at constant prices (2004-05) for the year 2013-14 is estimated at Rs 2,07,069 crore as against Rs 1,96,182 crore for 2012-13 reflecting a growth of 5.55 per cent.

The growth of economy has been witnessing a decline since 2009-10 mainly on account of the decline in the growth of the industry sector coupled with the slow pace of growth in service sector," he said.

The comparative analysis shows that GSDP growth in Telangana is higher than the national average. As against the national average of 4.47per cent, the GSDP growth in Telangana in 2012-13 was 4.51per cent. Similarly, in 2013-14, it was 5.55per cent in Telangana compared to national average of 4.74per cent.

The sectoral composition of GSDP growth for 2013-14 is highest in service sector with 7.15per cent followed by Agriculture sector with a growth of 4.58per cent and industry sector with 2.70per cent.

The lower growth of industry sector in Telangana is on account of negative growths of 2.29per cent and 2.58 per cent in the unregistered manufacturing and mining and quarrying, respectively.

As per the provisional estimates of 2013-14, the per capital income of Telangana State at current prices increased to Rs 93,151 from 83,020 in 2012-13 registering a growth of 12.20 per cent registering a growth of 12.20 per cent.

According to the Finance Minister, the higher fiscal deficit of 4.79 per cent of the GSDP as compared with the deficit of 3.0 per cent of GSDP stipulated in the FRBM Act, 2005 is mainly on account of the higher expenditure commitments in farm, power, irrigation, drinking water and roads sector in the new State that too during its first year of existence. "Attempts will be made to comply with the limits in as short a time as feasible," he said.

"As Telangana is a new State, there are no past trends to realistically assess the revenue potential of the State for the years 2015-16 and 2016-17. Therefore, the targets for these two years have not been arrived at," said the Finance Minister.

Similarly, Etala said that it was difficult to estimate the tax revenues of the new State. "As Telangana is a new State, there are no past trends with regard to revenue collections and therefore, it is difficult to make a realistic assessment of revenue is 2014-15.

Based on certain assumptions, own tax Revenue is 2014-15 is budgeted at Rs 35,378 crore for 10 months," he said. The Non-Tax Revenue is estimated at Rs 13,242 crore which includes revenue from Mines & Minerals at Rs 1,878 crore, contra interest receipts at Rs 2,509 crore and Rural Development Cess at Rs 344 crore and Rs 6,500 crore under regularization of government lands. 'The State Government is very keen to improve the collection of non-tax revenues,' he said.

"The strategy of government's expenditure management is to redirect government expenditure away from less productive schemes towards investments which will result in lasting benefits to the poor and the needy.

The government is of the firm belief that development will have no meaning if the poor are left behind. With these objectives in view, the government is taking up a number of flagship programmes," the Finance Minister said while listing out some of the major schemes.