Telangana Govt: Challenges faced by Telangana Govt in funding social programmes | Hyderabad News

Hyderabad: Congress government is heavily dependent on growth income With excisestamps and registration, transport and mining to raise nearly Rs 60,000 crore this fiscal year to fund their social programs and key projects. But it will be a difficult task without raising taxes or increasing loans or both, financial experts said. Moreover, any revision in excise duties, stamps and registrations and transportation would have a direct impact on the people.
The government has set ambitious revenue targets for these departments this fiscal, increasing them by almost Rs 10,000 crore over what they managed in the previous fiscal. In the budget presented on Thursday by Finance Minister Mallu Bhatti Vikramarka, the expected revenue from excise is Rs 25,618 crore, from stamps and registration Rs 18,229 crore, from transport Rs 8,478 crore and from mining Rs 6,590 crore.
Allaying concerns about the rise in liquor prices, Excise Minister Jupally Krishna Rao said their aim was to increase revenue by plugging the leaks. Sources said the government may grant licenses to elite bars, which would be one way to increase revenue from the sector without passing on the burden of higher prices to the people.
But people may have to pay higher fees for property transactions. The administration is considering proposals to change the value of government land by 20-30% to generate more net income from property registration. It may also consider changing stamp and registration fees.
However, it was not clear whether the government would increase motor vehicle tax to meet the revenue targets for the Transport Department.
As for borrowings, the budget had projected them at a little over Rs 62,000 crore. However, of this amount, nearly Rs 31,000 crore will be used to service loans taken by the previous government, leaving little for its plans.
The government expects Rs 21,635 crore in central grants, Rs 35,200 crore in non-tax revenue, Rs 33,449 crore from VAT and Rs 50,763 crore from GST. But all this may still be insufficient, experts said.
According to financial expert and World Bank consultant GK Rao, the budget does not specify specific sources of funding for government social programmes, so finding additional sources of revenue without having to take further loans or levy additional taxes.
“The government can raise money through long-term bonds from various sectors and by creating corporations for open market borrowing. It can also mortgage or auction its land. Since the budget provides for central funds and GST, the Centre-state relationship will be crucial for resource mobilisation. A counter-guarantee from the central government will be necessary if the state decides to borrow from the World Bank and other international monetary agencies,” Rao said.
Even though Chief Minister A Revanth Reddy made it clear that he would not attend the NITI Aayog meeting to protest the “injustice” done to the state in the Union Budget, financial experts were of the view that Telangana’s participation could come as a financial help to the state.