Hyderabad: Deputy chief minister and finance minister Mallu Bhatti Vikramarka is set to introduce the Congress government’s second full-time budget for the fiscal year 2025-26 on Wednesday.
The state government has to do a balancing act of fulfilling the financial commitments with the necessary mobilization of resources to implement various welfare schemes. However, govt seems to be having limited sources looking at the income and expenditure data released by the Comptroller and Auditor General of India for January this year.
It indicates that total receipts up to January amount to Rs1.82 lakh crore, which represents 66.57% of the Rs2.74 lakh crore forecasted in the budget estimates, with only two months remaining in the fiscal year 2024-25. In December, the state utilized the special drawing facility for all 31 days, totaling Rs 4,560 crore, and availed itself of ways and means advances for 24 out of those 31 days, amounting to Rs 1,776 crore.
A significant portion of these receipts came from borrowings and other liabilities, which totalled Rs 58,586 crore, exceeding the projected figure of Rs49,255 crore for the fiscal year by Rs 9,000 crore. Although the potential for increasing taxes to generate additional revenue seems limited, the government expects a rise in revenues this fiscal year due to upcoming initiatives.
These include the proposed auction of 400 acres of land at Kancha Gachibowli and the planned auction of retail liquor outlets, both anticipated to yield substantial revenues. Additionally, increases in liquor prices and penalties in the mining sector are expected to contribute to income. The state also needs to explore ways to enhance non-tax revenue.