The Telangana government is facing a significant revenue shortfall, with tax collections falling far behind projections. As of September 30, the state had generated just Rs 69,000 crore in tax revenue, well below the targeted Rs 1.64 lakh crore. This shortfall of about Rs 13,000 crore is creating a major challenge for the government, which had set an ambitious overall revenue target of Rs 2.74 lakh crore for the 2024-25 fiscal year but has only managed to achieve 39.41% of that goal, amounting to Rs 1.08 lakh crore.
To address this gap, the government is exploring alternative strategies to boost revenue, without immediately raising taxes—especially with local body elections around the corner. One option under consideration is increasing liquor prices. Proposals include raising the cost of beer by Rs 20 and increasing the price of Indian-made foreign liquor (IMFL) by Rs 20 to Rs 70 per bottle. This could potentially generate an additional Rs 1,000 crore per month in revenue, helping to offset the budget shortfall.
The government is also looking into monetizing state assets. Plans include auctioning prime land for development and selling unsold flats from schemes like Rajiv Gruhakalpa in former Andhra Pradesh. Urban development authorities, including the Hyderabad Metropolitan Development Authority, have been asked to submit proposals for this purpose.
In addition, the government is ramping up efforts to recover pending dues from both the central government and various organizations, including funds owed from the bifurcation of Andhra Pradesh. An inter-departmental committee has been formed to handle these disputes, particularly concerning joint ventures with private companies in housing projects.
Lastly, the Telangana government is considering a one-time settlement scheme to encourage citizens and businesses to clear outstanding taxes and fines. While these measures are expected to provide short-term relief, officials acknowledge that they are not long-term solutions. The state plans to develop a comprehensive fiscal policy, implement austerity measures, attract new investments, and introduce schemes aimed at improving the financial well-being of residents to encourage more
