Fearing massive loan deficit, TS to rely on own revenue sources
Deccan Chronicle.| L Venkat Ram Reddy
Centre's restrictions on loans leave a gap of nearly Rs 45,000 crore
As a first step, the government quietly brought in a sharp hike in the life-tax of vehicles while also enhancing liquor prices in May. DC file imageg
Hyderabad: Despite the Centre giving a nod to the state government to raise Rs 4,000 crore loans through auction of bonds on June 7, it fears more restrictions in the remaining 10 months of this fiscal.
Officials in the finance department feel that the nod is only a 'temporary relief' and chances of getting Centre’s green signal for raising over Rs 59,000 crore for the entire fiscal 2022-23 are remote.
Going by the strict conditions being imposed on states in raising loans, officials state that the Union government may not permit Telangana to raise more than
Rs 15,000 crore loans this fiscal. This is bound to leave a gap of nearly
Rs 45,000 crore, which the state government has to mobilise on its own if it has to meet expenditures on salaries, pensions, welfare schemes and other budgetary targets.
The finance department has stepped up efforts to mop up revenue earnings to the maximum possible extent to cover the huge shortfall. This is aimed at earning at least an additional Rs 30,000 crore on its own.
As a first step, the government quietly brought in a sharp hike in the life-tax of vehicles while also enhancing liquor prices in May. These measures are expected to fetch an additional Rs 4,000 crore revenue to the exchequer. It also hiked market value of lands and property registration charges twice in six months, which is expected to fetch an additional Rs 4,000 crore compared to the revenues of the previous fiscal.
The government has expedited the process to auction government lands through HMDA and TSIIC to raise Rs 15,000 crore. Recently, it announced an OTS (one time settlement) scheme to recover sales tax arrears amounting to Rs 3,000 crore.
The government hopes to earn at least Rs 30,000 crore more with these measures, which would help it to cover up the deficit on account of Centre's restrictions on loans.