HYDERABAD: The state government seems to have pinned its hopes on its own higher tax revenues and non-tax revenues in 2023-24 to fund its welfare schemes and development programmes instead of depending on the Centre’s grants, share in the centrally sponsored schemes and tax devolution, going by the Budget estimates for 2023-24.
The Budget estimates indicate that the government plans to earn an additional Rs 21,000 crore tax revenues and Rs 7,000 non tax revenues in 2023-24. But there is no clarity on how it would earn additional tax revenues when it presented a 'tax free budget' for 2023-24 on Monday although sources in the finance department claim that this would be achieved by plugging the loopholes in the existing tax collections system but it generated doubts over the practicalities and possibilities.
The state government's own tax revenues in 2021-22 was Rs 91,271 crore. In 2022-23, it was estimated at Rs 1,08,211 crore in 2022-23 and in revised estimates 2022-23, it was further increased to Rs 1,10,592 crore. In the new budget 2023-24, it was pegged at Rs 1,31,028 crore, up by over Rs 21,000 crore.
Similarly, non-tax revenues was estimated at Rs 8,857 crore in 2021-22, which was sharply increased to Rs 25,421 crore in 2022-23, slashed to Rs 15,291 crore in revised estimates for 2022-23 and now increased to Rs 22,808 crore. Official sources said the government is planning to achieve non-tax revenue targets through sale of government lands and leasing out vacant government buildings in all the districts.
Of the tax revenue targets for 2023-24, the government is planning to collect 19,884 crore through sale of liquor. Rs 7,512 crore through taxes on vehicles, Rs 750 crore through taxes and duties on electricity, Rs 39,500 crore through sales, trade (VAT) . Of the non-tax revenue targets for 2023-24, the government is planning to collect Rs 13,754 crore through general services, Rs 2,184 crore through social services and Rs 6,475 crore through economic services.