Reserve Bank of India (RBI) released the report titled “State Finances – A Study of Budgets”.
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Telangana has been ranked among the top States in the country in terms of State’s Own Tax Revenues as proportion of the overall tax revenue.
The State’s own tax revenue is pegged at 84.2% of the overall tax revenue collected and it stands next only to Haryana which has own tax revenue constituting 86.9% of the overall tax revenue. This is compared to own tax revenue of less than 50% in States like Bihar and Jharkhand. The figures are disclosed in the “State Finances – A Study of Budgets” released by the Reserve Bank of India (RBI).
The RBI report said there has been a general increase in the share of own tax revenues which helped the States to reduce their dependence on devolution from the Centre. The report says the gross fiscal deficit during the current year is estimated to be 4% and the primary deficit at 2.4%. The State’s outstanding liabilities as percentage of the GSDP in budget estimates of 2023-24 stood at 27.8%, one percentage point higher than 26.8% of the previous year.
Going by the maturity profile of the outstanding state government securities, Telangana has 3.6% of its securities maturing in less than one year, 26.5% in one to five years and 11.5% in five to 10 years. A high of 37.5% of securities are placed in 10 to 20 years period while the maturity period of 21% of securities is above 20 years. “Around 79% of State Government Securities (SGS) are getting matured during next 10 years, implying higher rollover risk for State governments,” the study said.
The RBI report was appreciative of the tax reforms like Dharani portal for speedy disposal of cases as well as the revision of stamp duty rates on transactions like exchange of property, gift to members of family, construction agreements, partition and settlement cases and various sale agreements.
The apex bank acknowledged the reform measures like increase in life tax on different categories of vehicles and strict enforcement by punishing vehicle tax defaulters with hefty penalties up to 200%. The State Government had also created a separate tax research unit to analyse sector wise variance, effective parameter for investigation/audit and tax evasion methodologies adopted by taxpayers. The State had introduced ‘My Bill- My Rights’ scheme to raise awareness among public to ask for bill for purchase of goods and services, the report said.
