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Economic survey hails Telangana's tax growth

Telangana is among the top three states in terms of high irrigation coverage of their gross cropped area with 86 per cent. Punjab tops the chart with 98 per cent followed by Haryana-94 per cent, the survey said.

Hyderabad: The Economic Survey 2024-25, tabled in Parliament on Friday, praised Telangana's own tax revenue (OTR) growth, the We-Hub initiative, 100 per cent access to safe piped drinking water, strong growth in IT and services sectors, real estate, cement industry, irrigation area coverage among others.

Telangana is among the top three states in terms of irrigation coverage of gross cropped area, at 86 per cent, behind Punjab (98) and Haryana (94), the survey said.

The OTR accounted for more than half of the total tax receipts of 15 states, the highest being Telangana at 88 per cent, followed by Karnataka and Haryana (86). States with a higher ratio of own revenue receipts (ORR) to total revenue receipts tended to have relatively lower ratios of revenue deficit to total revenue receipts, the survey said.

The Economic Survey cited We Hub — The Women Entrepreneurs Hub — as a good example on how the support of the government could help women's entrepreneurship flourish. We Hub has raised `177 crore in funding and incubated 6,376 start-ups and SMEs, engaging 7,828 entrepreneurs.

In the recent past, various initiatives have been undertaken by state governments in collaboration with e-commerce market players to boost exports. These have included organising e-export Haat and signing a MoU with leading e-commerce players to drive e-commerce exports, etc. Telangana has announced a new policy which envisages an increase in e-commerce penetration in MSMEs by encouraging the participation of sellers on the ONDC portal and GeM portal, the survey noted.

The Jal Jeevan Mission (JJM) aims to ensure long-term water security for rural households by providing reliable access to safe piped drinking water. Eight states, namely, Telangana, Arunachal Pradesh, Goa, Haryana, Himachal Pradesh, Gujarat, Punjab, and Mizoram, have achieved 100 per cent coverage.

Referring to electrical infrastructure management, the survey said the Bhuvan initiative facilitates the management of electrical infrastructure in Maharashtra and Telangana through Web-GIS portals.

India is the second largest cement producer in the world after China. About 87 per cent of the cement industry is concentrated in Telangana ,Rajasthan, Andhra Pradesh, Karnataka, Madhya Pradesh, Gujarat, Tamil Nadu, Maharashtra, Uttar Pradesh, Chhattisgarh, Odisha, Meghalaya and West Bengal, it said.

The context for presenting the state-specific patterns in industrial and service gross state value added (GSVA) has been mentioned in the Survey.

There are four different scenarios in the relationship between services share in total GSVA (defined as service intensity of the state economy), and, services GSVA per capita. These four services include i) low service intensity, low per capita service GSVA; ii) low service intensity, high per capita service GSVA; iii) high service intensity, low per capita service GSVA; and, iv) high service intensity, high per capita service GSVA.

However, in category (iv), some state patterns are very clear —Karnataka’s, and to an extent, Telangana’s positions are majorly explained by the large presence of IT services, Maharashtra’s position is largely due to its strength of financial intermediation activities, and, Kerala’s position mainly because of the strong presence of trade, financial and real estate services.

Karnataka, Maharashtra, Telangana, Haryana, Tamil Nadu have more than one third of their services GSVA coming from real estate, ownership of dwelling & professional services. Karnataka (Bengaluru), Telangana (Hyderabad) and Maharashtra (Mumbai), Haryana (Gurugram) and Tamil Nadu (Chennai) have concentration of IT and fintech services leading to high demand for office and residential space.

According to the survey,Telangana was among the strong service sector performers with Karnataka and Kerala, with high per-capita service GSVA and service shares in GSVA but exhibit only around average industrial per capita GSVA. These regions largely depend on urbanised service-driven economies.

Referring to agricultural extension initiatives, the survey said the central government has established four regional extension education institutes located in Haryana, Telangana, Gujarat, and Assam. During FY24, 8,175 extension workers underwent training, with an additional 2,195 trained by November 2024. In addition to training programs, the government operates the Kisan Call Centre to address farmers’ queries regarding agriculture and allied sectors.

The Prerana model of education, implemented in Andhra Pradesh, Karnataka, Maharashtra, Tamil Nadu, and Telangana through the Sikshana Foundation, also emphasised peer learning and group work.33 small groups of four to five students collaborate on classroom activities, teaching and learning from each other.

The World Economic Forum (WEF) launched the project ‘Medicines from the Sky’ in collaboration with the government of Telangana in September 2021 in the Vikarabad district in Telangana. This programme was the first of its kind in Asia to deliver medicines and vaccinations to test the feasibility of medium range delivery options.

In 2022, the project was carried out in Arunachal Pradesh. It was observed that the delivery times had drastically improved, with trips reduced from eight hours by ground transport to just 22 minutes by drone. The International Civil Aviation Organisation (ICAO) recognised the project's achievements.

Reacting to the findings, senior BRS leader and former finance minister T. Harish Rao said “Telangana’s growth under KCR’s leadership was reaffirmed in the survey. The survey highlights Telangana’s top performance in revenue generation, irrigation, IT growth, and rural development, proving that the state thrived under BRS governance,” he said.

BRS working president K.T. Rama Rao said the “report is a slap in the face of the Congress government which has been blaming the BRS for its own inefficiency.”

( Source : Deccan Chronicle )
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