Revenue registers growth despite note ban, GST

Though the demonetisation and Goods and Service Tax (GST) shook the country economically, the Telangana, despite facing all odds, has been on the path of revenue growth. The note ban, which was enforced on November 8, 2016, gave jitters to the State in the last quarter of 2016-17 financial year with tax collections nose diving. Soon, the alert State government took a new initiative of promoting digital transactions from village to State capital and was successful on recovering the revenue loss by the first quarter of 2017-18 financial year.

As the State was on the track of recovery post demonetisation, the implementation of GST from July 1, 2017 had once again dealt a heavy blow to the youngest State in the country. However, the unstinted efforts by the government successfully pulled the State out of economical quagmire that was created by the centre’s one tax regime.

According to official figures, Telangana has registered an impressive 18 per cent growth in revenues in eight months till November. Despite GST, the State managed to recover the loss from increased revenues from the sale of liquor and petroleum products. Overall, the State government succeeded in achieving 18 per cent growth in the revenues as against 17.82 per cent the same period corresponding year.

All in all, the total revenues collected in 2015-16 were Rs 36,130 crore, while in 2016-17, it was Rs 42,564 crore, achieving a growth rate of 17.81 per cent. Meanwhile, the government projections say the total revenue will go up to Rs 50,000 crore with the increased revenues by the end of the present fiscal.

As of now, the major challenge before the government is to utilise the increased revenues in a planned way to meet the financial needs. The introduction and implementation of new welfare and development schemes, mounting debt burden and payment of loans will have to be dealt with by maintaining fiscal discipline.

While the government proposed 1.49 lakh crore budget outlay for 2017-18, the present trend in the revenue growth would have to be accelerated further to meet the budget requirement.