Telangana Government pins hopes on Dharani portal to shore up finances

Hyderabad: The State government has experienced a peculiar economic situation in the current 2020-2021 financial year.

In the first two quarters, the total borrowings of the State were higher than the revenues generated through different sources mainly property registrations, Excise duty, VAT, GST and non tax revenues. While the officials are confident that the State economy will bounce back with double revenues once the much-hyped Dharani portal opens for online land and property registrations from October 25 this year.

The officials attributed the Covid pandemic and slowdown in the economy post lockdown period for the steep fall in the State revenues. The stoppage of land registrations from September first week and the delay in the release of GST amount to Telangana by the Centre also deepened the financial crisis in the end of the second quarter of the current financial year.

Top officials said that from March to till August end, the State could rake in Rs 3,200 crore through property registrations by achieving 30 per cent of the target of Rs 10,000 crore from registrations this year. In September, the entire registration process was put on hold as part of the implementation of Dharani portal.

As against the target of Rs 27 ,000 crore VAT collections, the state could generate only 7,000 crore due to sudden fall in fuel consumption during the three month lockdown period from March to June. The release of GST amount from Centre was also less than Rs 10,000 crore against the expected 32,500 crore.

The generation of a mere Rs 2,000 crore out of Rs 30,000 crore from non-tax revenues also gave a big jolt to the government, officials said that state couldn't get more than Rs 24,000 crore revenues from all resources in the last six months. Whereas, the State had expected more than Rs 40,000 crore revenues in the first two quarters.

In a contrast, the State has gone for huge borrowings more than the revenues generated. A total of Rs 26,000 crore including the Centre's recent permit to Telangana to seek Rs 2,508 crore borrowings were sought from RBI and other public financial institutions till date by the State government to meet the financial needs, officials said, adding that during the lockdown, the government borrowed Rs 5,709 crore in April, Rs 7,642 crore in May, Rs 4,318crore in June, Rs 3,113 crore in July and in August the State borrowed Rs 3,000 crore.

In view of the economic slowdown, government has targeted to seek nearly Rs 40,000 crore borrowings to bridge the revenue deficit this year. The government is expecting state economic activity will move fast forward once the Dharani portal comes into operation as the government is planning to enhance the market value of the lands so that the stamps and registration fee collected will double and it will fill the State coffers from October end onwards. The new Dharani portal will come into operational from the auspicious Dussera festival this year.