Hyderabad: In the first half of the current financial year, the Telangana State government’s revenue deficit has crossed Rs 4,000 crore against the budget estimate of revenue surplus of Rs 4,571 crore at the end of the financial year.
In the first quarter, the revenue deficit was Rs 2,080 crore and at the end of the second quarter it has climbed to Rs 4,281.17 crore.
Compared to the first quarter, the revenue has been reduced by Rs 1,566 crore in the second quarter. Even though non tax revenue and revenue from excise duty and stamps and registrations has increased, the tax revenue has reduced by Rs 1,583 crore.
GST hits tax revenue
In the second quarter, the total revenue of the state was Rs 38,132 crore and the revenue expenditure was Rs 41,413 crore, which led to a revenue deficit of Rs 4,281 crore.
The state’s revenue in the first quarter was Rs 19,849 crore and in the second quarter it was Rs 18,283 crore. The revenue expenditure was reduced in the second quarter compared to the first quarter, however the state is facing a revenue deficit.
The revenue expenditure in the first quarter was Rs 21,930 crore and in the second quarter it was Rs 20,483 crore. The tax revenue was Rs 16,560 crore in the first quarter and it was Rs 14,977 crore.
Officials say that the newly introduced Goods and Services Tax has affected the tax revenue in the second quarter.
The revenue from excise duty was increased by Rs 224 crore and the revenue from stamps and registrations also increased by Rs 83 crore in the second quarter.
The non tax revenue also increased by Rs 364 crore in the second quarter. The capital expenditure was Rs 5,750 crore in the first quarter and in the second quarter it has reached to Rs 11,939.91 crore. The revenue expenditure was reduced by Rs 1,447 crore and capital expenditure was increased by Rs 6,190 crore.
Total budget for the current financial year is Rs 1, 44,986 crore, but at the end of first half year, the total expenditure was Rs 54,353 crore.
State government has spent only one- third of the total budget in the first six-month period. According to the present trend it is very difficult to reach the budget figures in the next six months. In the previous financial year in the revised budget estimates it has reached to 86 per cent of the budget estimate. In the current financial year also at the end of the year in the revised budget estimates it may likely reach 85% of the budget estimate.