Telangana has witnessed a huge revenue deficit in the first quarter of this fiscal from April to June. While the state revenue for the quarter, the government spent 31,029 crores, resulting in a revenue deficit of 10,540 crores. This is the highest-ever revenue deficit since the state formation.
However, the finance department plays it down saying that revenue deficit was common in the first quarter of any financial year due to lower tax collections. Telangana is the only revenue surplus state’ after Gujarat.
The government is confident of posting ‘revenue-surplus’ figures by the end of this fiscal. In the first fiscal, the government spent 4250 Crore towards Crop Loan Waiver, 2000 Crore towards Fee Reimbursement arrears and 4000 Crore to contractors of irrigation projects and Mission Bhagiratha.
The government had raised 10,540 crores through loans and sale of bonds to meet the expenses. Out of 19489 crore revenues earned by the government, it has received 4628 Crores from the Central Government in the form of tax devolution and grants-in-aid.
