Telangana revenue from land and property sales and interest-payment burden (2014-15 to 2023-24)

The Hindu
The Hindu
5h ago
Telangana used sales of its land and property to meet immediate financial requirements during 2014-15 to 2023-24, receiving ₹16,478 crore, while also spending more than 10% of total expenditure on interest payments, according to the CAG.
Telangana revenue from land and property sales and interest-payment burden (2014-15 to 2023-24)
A What happened
Telangana opted to sell its lands and property as a revenue generation method to meet immediate financial requirements during 2014-15 to 2023-24, when the Bharat Rashtra Samiti (BRS) was in power. The CAG’s decadal review said Telangana received ₹16,478 crore from sale of land and property and miscellaneous other receipts, with land-sale proceeds forming 69% of the State’s non-tax revenue receipts during the period. Telangana received ₹12,795 crore from mineral royalties, constituting 23% of non-tax revenue receipts, and stood next only to Chhattisgarh and Jharkhand in mineral-royalty non-tax revenue receipts. The CAG said Telangana was among 11 States that spent more than 10% of total expenditure on interest payments, and Telangana’s interest expenditure was higher than its pensionary expenditure during the period.

Key insights

  • 1

    Land and property sales formed a major share of non-tax revenue: Land-sale proceeds constituted 69% of Telangana’s non-tax revenue receipts during 2014-15 to 2023-24.

  • 2

    Interest payments were a significant expenditure pressure: The CAG said Telangana was among 11 States spending more than 10% of total expenditure on interest payments, and its interest expenditure was higher than its pensionary expenditure during the period.

Takeaways

The CAG reported that Telangana raised substantial revenue through land and property sales during 2014-15 to 2023-24 while carrying relatively high interest-payment obligations in its expenditure profile.

Topics

Business & Markets Economy World & Politics Governance

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