Telangana Government mulls selling costly lands to mop up revenue

Hyderabad: Having made several promises in the budget 2020-21, the Telangana government seems to be harping on the sale of costly lands and disposal of non-productive assets (NPAs) to achieve the revenue generation target it has set in the budget proposals.

The government has projected that it would mop up Rs 1.43 lakh crore revenue through taxes, non-tax revenues and the share of Central taxes, duties, etc.

It may be noted here that the government this time has estimated to double the non-tax revenues to Rs 30,600 crore in 2020-21 from the revised estimation of Rs 12,270 crore in the current financial year.

Officials said that the government is expecting nearly Rs 15,000 crore from the sale of lands which has been identified mainly in Hyderabad and Ranga Reddy districts and the disposal of non-performing assets under Rajiv Swagruha.

Taking the advantage of the realty boom, the government also projected the revenues through stamps and registration to Rs 10,000 crore from Rs 6,440 crore, the officials said, adding that the land rates and the stamp duty are likely to be enhanced to achieve the targets from stamps and registration fee in the coming financial year.

The revenue receipts from the excise through liquor sales is pegged at Rs 16,000 crore as against the revised estimation of Rs 12, 600 crore.

The total revenue projected through State Owned Tax Revenue (SOTC) in 2020-21 is 85,300 crore which was only Rs 71,327 crore in the present year.

As the Centre is not friendly towards the state in the release of funds, the government is expecting the share of Central taxes (income tax, Union excise duties, etc) to Telangana is Rs 16,722 crore only and it was Rs 15,980 crore in the current year.

The government is estimating Rs 10,520 crore as grant in revenue and other contributions in the new financial year.