The Telangana Budget for the Financial Year 2025-26 strikes an ideal balance between welfare initiatives and developmental projects. To boost revenue, the State Government intends to concentrate on four key areas: Registration and Stamps, Land, Excise, and Cess, as stated by senior officials from the Finance Department.
The government has already implemented some changes in the excise sector, with additional reforms planned for other areas in the near future, according to officials.
In response to inquiries from businessline regarding whether the State government is overly reliant on Grants-in-Aid and Contributions, or if the projected figures are exaggerated, an official clarified, “This is not the case, as the sources and scopes of revenue have been clearly delineated.” Furthermore, the State remains optimistic about achieving its targeted revenue through these Grants-in-Aid and Contributions.
When questioned about whether the government is taking a cautious approach to spending in this budget, K. Ramakrishna Rao, the Special Chief Secretary in charge of the Finance portfolio, confirmed, “You could say that.”
He emphasized that the State government is progressing in the right direction, noting that the gap between projected revenue and actual receipts is narrowing. This improvement is attributed to the implementation of effective mechanisms designed to close loopholes in tax collection, ensuring that anticipated revenues are realized.
For instance, the revenue generated from sand sales has significantly increased in recent weeks. Previously, Telangana was earning ₹1 crore per day from sand sales, but that figure has now risen to ₹2.5 crores daily. This reduction in the revenue gap is a result of robust measures taken, highlighting the State’s commitment to enhancing tax collection efficiency.
However, the official was careful to point out that this does not imply an indiscriminate increase in taxes, as taxpayers cannot be overburdened. Furthermore, Telangana ranks highly among states for its own tax revenue, trailing only Karnataka in overall tax collections.
These initiatives are part of broader efforts to maximize revenue through Centrally Sponsored Schemes, particularly those involving collaboration between the Centre and the State. This has been facilitated by the State’s prompt release of matching grants for these projects, thereby preventing delays in the disbursement of funds from the Centre.
