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The Hindu
4 days ago
- Business
- The Hindu
Telangana's first quarter revenue receipts is 16.2% of estimates; 61% of ₹37,221 goes for interest payment, salaries and pensions
Telangana's revenue receipts continue to disappoint the government with overall receipts standing at ₹37,221 crore at the end of the first quarter of the current financial year (2025-26), of the ₹2.29 lakh crore projected for the fiscal. The revenue generated in the first (April to June) quarter indicates the challenges the government has to face in the coming days to fulfil all its promises. What are revenue receipts? They are funds received by a government in the form of tax revenue, non-tax revenue, and grants-in-aid and contributions. Tax revenue sources are Goods and Service Tax; Stamps and Registration; Land Revenue; Sales Tax; State Excise Duties; State's share of Union taxes, and other taxes and duties. Non-tax revenue includes interest of loans given, dividends on investments. The State's total receipts—including ₹20,266 crore borrowings—during the first quarter stood at ₹57,499 crore, 21.06% of the ₹2.84 lakh crore projected in the budget estimates. What are total receipts? Total receipts includes revenue receipts and capital receipts. The latter includes recovery of loans and advances, borrowings and other liabilities. Tax revenue during in the first quarter was ₹35,721 crore, 20.38% of the ₹1.75 lakh crore projected for the fiscal while interest payments were pegged at ₹6,772 crore, 34.97% of the ₹19,369 crore projected for the fiscal indicating that the State will yet again struggle with interest payment at the end of the fiscal as it will be much higher than that of the budget estimates. Earnings On the earnings front, revenue through Goods and Services Tax stood at ₹12,622 crore against ₹59,074 crore of the budget estimates and that through Registration & Stamps was ₹3,712 crore, 19.45% of ₹19,087 crore of the fiscal. State Excise duties continue to be below expectations at ₹4,595 crore, 16.64% of the ₹27,623 crore of budget estimates and Sales Tax collections were a shade better at ₹8,466 crore, 22.6% of the ₹37,463 crore projected for the year. Revenue through Grants in Aid and Contributions continued to bely expectations at ₹433 crore, just 1.9% of the ₹22,782 crore so also accrual through non tax revenue pegged at ₹1,066 crore, 3.37% of the budget estimates respectively at the end of the first quarter. Expenditure On the expenditure front, Salaries/wages consumed a major chunk with ₹11,608 crore, 34.97% of the ₹44,478 crore projected for the fiscal and payment of pensions accounted for ₹4,572 crore, 34.88% of the ₹13,109 crore of the budget estimates. Another major head under expenditure was subsidy, primarily on account of free power, which was pegged at ₹5,932 crore, 36.3% of ₹16,345 crore projected for the year. Revenue deficit The State's revenue deficit at the end of the first quarter stood at ₹10,582 crore against surplus of ₹2,738 crore projected in the budget estimates and fiscal deficit was at ₹20,266 crore, 37.52% of the ₹54,009 crore of the budget estimates for the year. The primary deficit was pegged at ₹13,493 crore, 38.95% of the ₹34,640 crore of the budget estimates.
The Hindu
16-05-2025
- Business
- The Hindu
Telangana registers ₹1.67 lakh crore revenue till March end, 75.85% of ₹2.21 lakh cr projected for FY 2024-25
The Telangana government has registered overall revenue receipts of ₹1.67 lakh crore during the financial year 2024-25. The revenue receipts, including capital receipts in the form of market borrowings to the tune of ₹48,322 crore, indicated that the State could achieve little over 75% target of the ₹2.21 lakh crore projected for the financial year. The State had borrowed ₹64,456 crore till the end of February and reportedly repaid ₹16,134 crore in March, which includes settlement of ways and means advances, taking the total borrowings to ₹48,322 crore. What are revenue receipts? It is the amount earned through tax and non-tax sources, grants in aid and borrowings. It is used for expenditure including payment of salaries, pensions, on welfare schemes including on subsidies. 80% of tax revenue projected realised Tax revenues from all sectors, except for sales tax and State's share of union taxes, remained around 80% of the projections in the budget estimates for the year. The State secured ₹19,149 crore through State's share of Union Taxes against ₹18,384 crore projected in the budget estimates. Sales tax collection too was impressive at ₹31,815 crore, 95.12% of the ₹33,449 crore of the budget estimates, according to the preliminary report on the state accounts submitted to the Comptroller and Auditor General of India. Revenue through Goods and Services Tax up to March was ₹50,343 crore, 85.92% of ₹58,594 crore of the budget estimates and that through State Excise duties was ₹18,603 crore (₹25,617 crore budget estimates) while that through other taxes and duties was ₹7,896 crore (₹10,111 crore budget estimates). Non tax revenue too was good at ₹23,607 crore, 67% of the ₹35,208 crore budget estimates but accruals through Grants in Aid and Contributions continued to bely expectations pegged at ₹7,913 crore, just 36.57% of the ₹21,636 crore of budget estimates. Where was money spent in 2024-25? Expenditure on salaries/wages -> ₹42,245.51 crore Expenditure on pension -> ₹16,950 crore Expenditure on interest payment -> ₹26,688crore Expenditure on subsidy -> ₹11,508crore Expenditure On the expenditure front, payment of salaries and wages and pension continued to account for major chunk of spending followed by interest payment. The government incurred expenditure of ₹42,245 crore on payment of salaries/wages against ₹40,041 crore of budget estimates while the outgo on account of payment of pensions was ₹16,950 crore, 145% of the ₹11,641 crore projected in the budget estimates. Interest payment continued to be on the higher side at ₹26,688 crore, 150% of ₹17,729 crore. Revenue deficit The State reported revenue deficit of ₹8,782 crore at the end of March as against ₹297 crore revenue surplus of budget estimates and the fiscal deficit was at ₹48,322 crore against ₹49,255 crore. The primary deficit till March end was ₹21,633 crore significantly lower than ₹31,525 crore of the budget estimates. Sources of tax revenue Goods and Service Tax Stamps and Registration Land Revenue Sales Tax State Excise duties State's share of Union taxes Other taxes and duties Sources of non-tax revenue Land sale, interest on loas given, accruals on inter-State settlements and others What are Grants in aid and Contributions Grants from union government
