With significant increases in GST and VAT collections, coupled with prudent expenditure management, Telangana is poised for sustained economic stability and growth. (DC File Image)
HYDERABAD: Telangana finances are back on track in the new fiscal 2024-25 as the state government has witnessed a jump in tax and non-tax revenues in the first two months (April and May). Tax revenue increased by Rs 1,766 crore in April, while the state government's total earnings in April stood at Rs 14,068 crore. In May, the state government earned an additional Rs 600 crore through GST and VAT collections.
In May 2023, the earnings through GST and VAT was Rs 5,593 crore, which rose to Rs 6,097 crore this May. In May 2023, the government earned Rs 1,250 crore through VAT on liquor, which increased to Rs 1,518 crore in May 2024.
In April 2024, the state government's total earnings stood at Rs 14,068 crore while the expenditure stood at Rs 13,918 crore. It spent Rs 1,865 crore in the month towards interest on loans secured by previous government against Rs 1,483 crore spent in April 2023.
The other major expenditure components in April 2024 were payment of salaries at Rs 3,847 crore for staff and pensions at Rs 1,331 crore.
Approximately, Rs 4,677 crore was spent on welfare schemes in April 2024 as against Rs 4,087 crore in April 2023.
The expenditure on welfare schemes and salaries increased in April 2024 over the corresponding month last year. The salary expenditure increased by Rs 609 crore.
The revenue deficit decreased from Rs 5,026 crore in April 2023 to Rs 2,246 crore this April.
In April 2023, the state government's tax revenues were recorded at Rs 9,698 crore, which increased by Rs 1,766 crore in April 2024.
The major tax collections were accrued through GST at Rs 4,475 crore, sales tax Rs 2,661 crore, excise tax Rs 1,580 crore, stamps and registrations Rs 1,116 crore and Rs 908 crore through the state's share in central taxes.
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