At a time when states are facing pressure to lower value added tax (VAT) on diesel and petrol sales, the Controller and Auditor Generals (CAG) report forTelanganareveals that the government was already facing a of Rs 8,000 crore according to calculations till September.
In sharp contrast to budget predictions of a total revenue surplus of Rs 6,743 for the entire fiscal year, CAG now predicts a revenue deficit of up to 119%.
The budget estimates (2021-22 financial year) states that the states own Revenue Receipts will be Rs 1.76 lakh crore this fiscal year, with Telanganas own Resources being Rs 1.23 lakh crore.
Until September, it was projected that the state would earn Rs 53,000 crore in revenue, but it only received Rs 43,000 crore from its own sources, which is only 30% of the anticipated income.The state has raised loans of Rs 25,573 crore in the first six months of the fiscal year.
According to CAG estimates, the state has also earned Rs 12,000 crore through VAT sales.
The numbers also reveal that the states own tax collection is on course, but the Centres grant, the state portion of central taxes, and non-tax revenue forecast have all taken a hit.
From the collection of VAT, the state enjoyed a significant income source in the form of Rs 13,000 crore and Rs 8,000 crore from excise duty. Stamps and registration revenue was the next largest source of revenue, accounting for Rs 4,000 crore so far.
The State Government has estimated that it will get Rs 30,000 crore as non-tax revenue in this financial year, but has only earned Rs 4,000 crore until now.