HYDERABAD: With huge commitments — such as the implementation of the Pay Revision Commission (PRC) report, unemployment dole and the increase in the number of Aasara pensions — becoming an albatross around the Telangana government’s neck, officials are racking their brains to find ways to improve the revenue and make necessary suggestions for the 2021-22 State Budget.
After the introduction of the GST regime, the government has limited the options to increase taxes. It is left with only four to five options to augment receipts. One of them is to increase the land values and stamp duty. There is also scope for improving revenues through mining activities. The market value of land has not been increased after the State formation in 2014.
Though the officials had suggested to the government to increase the value, it did not act on it. The reason they gave for this dilly-dally was that once the land values or stamp duties are hiked, people may go in for Sada Bainamas (agreements on plain paper), which ultimately dent the State’s revenues. “The government may consider increasing land values and stamp duty only after the Dharani portal is commissioned for non-agricultural property registrations and the imposition of a freeze on Sada Bainamas,” a source in the Finance Department said.
The other option is to ensure the accrual of additional income through the sale of government land. But the its performance on this count has been far from satisfactory. Though the government had estimated in its previous Budgets that it would be able to mobilise Rs 10,000 crore through sale, it did not happen due to lockdown which led to the economy turning belly-up. Due to lack of funds, the government could not give Aasara pensions to new beneficiaries.
Tax on the sale of liquor is another area where the government could mop up its revenues. It already got close to Rs 750 crore from the application fee for issuing licences for bars. It could also save around Rs 10,000 crore per year if it puts a cap of five acres for Rythu Bandhu.
For more revenue realisation in the last quarter of this fiscal and to meet the targets, Chief Secretary Somesh Kumar had constituted 460 teams with 1,376 officers. The government is focussed on a revenue mobilisation drive.
Huge commitments
If PRC report is implemented: Rs 2,252 crore
New Aasara pensions: Rs 1,600 crore
Dole for unemployed youths: Rs 1,800 crore
Dalit Empowerment Fund: Rs 1,000 crore