This estimate includes Rs 35,378 crores expected in tax revenues and Rs 13,242 crores in non-tax revenues.
The Telangana State is expecting a revenue of about Rs 48,620 crores during the financial year 2014-15. This includes Rs 35,378 crores in tax revenues and Rs 13,242 crores in non-tax revenues.
The average annual growth rate of the economy of Telangana has been 9.83% from 2004-05 to 2013-14 at constant prices (2004-05). The growth of the GSDP for the year 2014-15 is assumed to be 15% in nominal terms over the preceding year.
This was disclosed by Finance Minister Etela Rajender in the statement on fiscal policy tabled in the State Legislative Assembly on Friday.
"The GSDP at constant prices (2004-05) for the year 2013-14 is estimated at Rs 2,07,069 crores as against Rs 1,96,182 crores for 2012-13, reflecting a growth of 5.55%. The growth of the economy has been witnessing a decline since 2009-10 mainly on account of the decline in the growth of the industrial sector coupled with the slow pace of growth in the service sector," he said.
A comparative analysis shows that GSDP growth in Telangana is higher than the national average. As against the national average of 4.47%, the GSDP growth in Telangana in 2012-13 was 4.51%. Similarly, in 2013-14, it was 5.55% in Telangana compared to the national average of 4.74%.
The sectoral split-up of the GSDP growth for 2013-14 shows the service sector growing at 7.15% followed by agricultural sector growing at 4.58% and the industrial sector at 2.70%. The lower growth of industrial sector in Telangana is on account of negative growths of 2.29% and 2.58% in the unregistered manufacturing, and mining and quarrying, respectively.
As per the provisional estimates for 2013-14, the per capita income of Telangana at current prices increased to Rs 93,151 from Rs 83,020 in 2012-13, registering a growth of 12.20%.
According to the Finance Minister, the higher fiscal deficit of 4.79% of the GSDP as compared to the deficit of 3.0% of GSDP stipulated in the FRBM Act, 2005, is mainly on account of the higher expenditure commitments in the farm, power, irrigation, drinking water and roads sectors in the new State, and that too during its first year of existence.
"Attempts will be made to comply with the limits in as short a time as feasible," he said.
"As Telangana is a new State, there are no past trends to realistically assess the revenue potential of the State for the years 2015-16 and 2016-17. Therefore, the targets for these two years have not been arrived at," said the Finance Minister.
Similarly, Etela said that it was difficult to estimate the tax revenues of the new State.
"As Telangana is a new State, there are no past trends with regard to revenue collections, and therefore it is difficult to make a realistic assessment of the revenue for 2014-15. Based on certain assumptions, our tax revenue for 2014-15 is budgeted at Rs 35,378 crores for 10 months," he said.
The non-tax Revenue was estimated at Rs 13,242 crores which includes revenue from Mines & Minerals at Rs 1,878 crores, contra interest receipts at Rs 2,509 crores, the rural development cess at Rs 344 crores, and Rs 6,500 crores under the regularization of government lands. (INN)