State has a revenue deficit despite higher tax collection

Telangana has more borrowings than revenue receipts in the first quarter (April-June) of 2017-18.

HYDERABAD: Telangana has more borrowings than revenue receipts in the first quarter (April-June) of 2017-18. Even though the state registered 10.92 pc growth in tax collections in the first quarter over the corresponding period of the previous financial year, it has a revenue deficit.

According to the latest figures available with Comptroller and Auditor General of India, the state’s total revenue receipts are Rs 19,489 crore and the revenue expenditure is Rs 21,930 crore, leaving a revenue deficit of Rs 2,441 crore. “We have revenue deficit in some quarters and revenue surplus in some others,” an official in the finance department said.

However, the expenditure over and above revenue receipts was due to borrowings, sources explained. Total expenditure in the first quarter is Rs 31,029 crore and the capital expenditure is Rs 11,540 crore. The major portion of the capital expenditure of Rs 2,851 crore was on irrigation projects.

But the total expenditure or the capital expenditure would not reflect the actual expenditure by the government. The state government borrowed money outside the budget for projects like Mission Bhagiratha. “The details of such expenditures will be available with their respective corporations,” sources said.

Sources in the finance department explained that as per the Central government’s estimate, the inflation rate was just 2 pc and the growth in tax revenue of 10.92 pc was much higher than the inflation.

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