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Hyderabad:Telangana is emerging as a formidable economic power in the country, recording a remarkable growth in a short span of time. This is evident from the State achieving a 69 percent growth rate in Goods and Services Tax (GST) collections in less than four years.
As per the latest report submitted to the Comptroller and Auditor General (CAG), the GST revenue of Telangana increased from Rs 28,786 crore in 2018-19 to Rs 41,889 crore in 2022-23, amounting to a substantial rise of Rs 13,103 crore.
Despite the global financial challenges posed by the COVID 19 Telangana managed to maintain an optimistic trend in GST collections. In the fiscal 2018-19, when GST was introduced by the Centre, Telangana received Rs 28,786 crore in GST revenue, representing 84 per cent of the budget estimates of Rs 34,232 crore. While the entire world was reeling under the adverse impact of the pandemic, Telangana continued on a growth trajectory in the subsequent years, even during the lockdowns.
In 2019-20, the estimated collection was Rs 31,186 crore, and Telangana managed to collect Rs 28,053 crore, accounting for 90 per cent of the budget estimates. The financial year 2020-21 witnessed a collection of Rs 25,905 crore against an estimated revenue of Rs 32,671 crore, reaching 80 per cent of the budget estimate. In 2021-22, the State estimated Rs 35,520 crore and managed Rs 34,489 crore, marking 97 per cent of the budget estimates.
Similarly, for 2022-23, the estimated collection was Rs 42,189 crore, and Telangana collected Rs 41,889 crore, representing 99 per cent of the budget estimates.
Telangana’s consistent growth in GST collections can be attributed to the strong financial planning and policies implemented by the KCR government. The State has undergone significant changes over the last nine years, with improved financial conditions and increased purchasing power for its citizens. Thus, the business sector continued to thrive, contributing to the surge in GST revenue, officials point out.
Despite the challenges posed by the Modi government at the Centre, Telangana stood strong on its own feet and emerged as an economic force. With a robust economic strategy and effective utilisation of financial resources, the State has become a model for others.
The Commercial Taxes department has played a crucial role in achieving these impressive results. Various reforms, including the establishment of new circles, clear objectives at every level, and the abolition of manual notices and proceedings, have contributed to the remarkable growth in tax revenue, officials said.
Telangana’s exceptional performance has attracted the attention of other States, such as Gujarat and Uttar Pradesh, who have come to study the reforms implemented by the Commercial Taxes department. The State’s proactive approach to financial planning and reforms has paved the way for sustained growth and established Telangana as a model for other States to emulate
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