HYDERABAD: Has the economic slowdown reached the doorsteps of the Telangana government, as indicated by Chief Minister K Chandrasekhar Rao in the recent state Budget? One of the early indicators is a drop in revenue collection by the Registration and Stamps Department.
It has recorded a drop of Rs 151.15 crore in its collections in September 2019-20 compared to the previous month. From Rs 649.33 crore, it fell to Rs 498.18 crore. This figure also assumes significance as it is the first time the department has recorded such a fall in revenue since the formation of the state.
Over the last six years, the revenue figures of September have been on an upward trajectory, except in 2019-20, when the figure dropped from Rs 625.71 crore in September 2018-19 to Rs 498.18 crore in September 2019-20, a fall of Rs 127.53 crore.
The last time the department witnessed a major slack was in 2008 and later, over a couple of years leading to the formation of the state. Collecting revenue for the state exchequer by way of stamp duty, transfer duty and registration fees, the department is now the state’s third-largest revenue-earning department.
In the first six months of Financial Year 2019-20, the department registered 8,64,487 documents and earned a revenue of Rs 3,533.39 crore. This figure gives officials ample hope, as the department earned Rs 2,283.40 crore and Rs 3,210.24 crore in the same period during 2017-18 and 2018-19 respectively.
In the previous financial year, the department registered 15,32,980 documents, recording a growth of 34.9 per cent, and earned a gross revenue of Rs 6,612 crore, at a growth rate of 27.73 per cent. Officials are wary of the economic slowdown engulfing different sectors and have adopted a wait-and-watch approach.
The impact of recession, if any, would only be seen a few months from now, opined an official who felt that fluctuation in the revenue collection is part of the usual cycle in the department. However, there is a clear trend pointing to a slowdown, the official added.
When contacted, joint Inspector General Vemula Srinivasulu maintained that the population of Hyderabad has been ever-growing, and thus, the need for housing. “The phenomena would continue as long as people are attracted to the city. Also, ITE&S and Pharma exports are good. There is no need to worry,” he said.
According to him, the maximum registrations take place after Pongal, and revenues touch the ceiling between January and March. “The number of holidays, the sentiment of Ashadam etc. could have led to a fall in revenues,” he added.
Breaking the trend
Until the 2019-20 financial year, the revenue figures of September had been on an upward trajectory for the last six years.
| Year | August | September (in crores) |
| 2014-15 | 201.75 | 222.35 |
| 2015-16 | 304.08 | 294.15 |
| 2016-17 | 406.66 | 367.24 |
| 2017-18 | 315.97 | 398.55 |
| 2018-19 | 526.58 | 625.71 |
| 2019-20 | 649.33 | 498.18 |
| Year | Registrations | Revenue (in crores) |
| 2014-15 | 7,35,922 | 2,746.16 |
| 2015-16 | 9,66,946 | 3,785.95 |
| 2016-17 | 10,55,898 | 4,249.29 |
| 2017-18 | 11,36,372 | 5,177.00 |
| 2018-19 | 15,12,468 | 6,612.00 |
| 2019-20 | 8,61,961 | 3,533.39 (April to September) |