Fiscally crippled TS looks to land, liquor for money
Union Budget leaves Telangana woefully short of revenue
The state government is banking on land and liquor to mop up its revenues while drafting its upcoming budget 2021-22. This dependence became direr in the wake of the recent Union Budget, which dealt a deadly blow to the state by imposing cuts in tax devolution, besides levying an agricultural cess on fuel.
The state government is estimated to lose `5,000 crore due to a cut in share of its tax devolution and an additional `300 crore on account of the agri cess.
Taking into account the twin losses, the government is seriously considering selling government land and increasing liquor sales, as it is left with no other option to make up for the losses incurred, according to sources in the finance department.
With the realty sector booming, especially after the launch of Dharani portal in November last, the government wants to encash it by putting prime government land parcels, especially on the city’s outskirts and neighbouring districts, for auction to mobilise funds for the next fiscal year, the sources said.
After realty, liquor was identified as the next significant source of notching up additional revenues for the state. Though all sectors
in the state were battered due to the Coronavirus pandemic, lockdown and subsequent slowdown, realty and liquor sectors led the recovery of the state economy and earned huge revenues for the state government.
The state government is currently netting over `25 crore per day, on an average, through registration of properties, indicating a realty boom in the state. Despite the lockdown and slowdown in 2020, property registrations fetched increased to `20,000 crore in 2018 and `25,000 crore in 2019.
The figures for 2020 are yet to be released, but it is estimated that excise revenues will cross `30,000 crore by the end of the remaining two months of this fiscal.
The government had recently issued a notification to permit 159 news bars across the state from next week.