Hyderabad: Calling it a”warning sign for the economy”, ex-finance minister and Bharat Rashtra Samithi (BRS) MLA on Thursday, March 6, said the Congress-run Telangana government should “acknowledge its mistakes” and focus its efforts on reviving the state’s revenue and economy.
The BRS leader claimed that Telangana’s recent economic performance has raised several concerns, and that it contradicts claims of the state’s ‘rising prosperity’.
“Despite a robust growth trajectory in GST collections over the past six years, the state’s GST growth rate has slumped to a mere 1% this February under Revanth Reddy’s regime. This decline is a symptom of a larger problem, pointing to a slowdown in economic activity, reduced consumer spending, and a decline in business confidence,” said Harish Rao in a press release.
It may be noted that on December 4 last year, Telangana chief minister Revanth Reddy revealed that the state is running short on revenue and is in dire need to funds. He had then said that his government has been getting Rs 18,500 crore revenue every month instead of the required Rs 30,000 crore. He also added that the generated revenue is not enough to meet the requirements.
In the release, Harish Rao also said that Telangana’s GST growth rate has consistently recorded above six percent in the past six years (except during the COVID-19 pandemic), making it a cause for concern.
“Furthermore, vehicle tax revenues have taken a hit, with a negative growth rate recorded between April and November 2024. Registration tax revenues have also declined post-August 2024, due to the government’s thoughtless acts related to projects like Hydra and Musi,” stated Harish Rao.
He attacked the Congress government in Telangana for its “inability to boost GST revenues, coupled with the decline in registration and vehicle tax collections”, which he said are shortcomings of its economic policies.
