Hyderabad: Telangana’s economy is poised to finish 2017 on a cheerful note, reporting impressive GSDP growth rate and revenue tax collection.
The state succeeded in overcoming the impact of the demonetisation and the GST in 2017 and is continuing to post strong financials for 2017-18 financial year.
It recorded an impressive double-digit growth rate for 2016-17, which was way ahead of the national rate and is poised to beat this record in New Year 2018 when GDP figures would be out.
The uninterrupted power supply provided to all sectors coupled with fast track industrial clearances played a major role in the growth rate taking a leap in 2017 over the previous year.
The year 2017 began on a discouraging note for the Telangana economy, than-ks to the impact of the demonetisation announced in November 2016.
The major sources of revenue, namely commercial taxes, excise, stamps and registration and tran-sport took a beating in the first three months of 2017.
The state government used to earn '8,000 crore, including the Central government’s tax share, every month on an average prior to the demonetisation.
This fell by half, post-demonetisation. But the economy got on the revival track from April after cash shortage was overcome and digital transactions were encouraged.
The implementation of GST from July again hit state revenues for three months till September, as the tax collections were halted due to transition from VAT to GST regime, failure of traders to file returns due to confusion over new rates and glitches in new regime network.
The ‘zero business’ to evade GST also increased significantly in the first few months, taking a toll on state revenues.
But from October, GST revenues went up and TS figured among one of the top five states with highest collection.
According to figures released by the Centre for three months till October, the revenue projection of TS is estimated at '5,235 crore, but '4,365 crore was realised, leaving a deficit of just '872 crore.
The projection for AP was Rs 4,369 crore, but the realisation was Rs 3,603 crore, a deficit of '766 crore. The gap between estimates and actuals of TS and AP was less than 10 per cent. The situation is better when compared with other states.
As many as nine states registered a deficit of 20-30 per cent and six states 40-50 per cent.
