Deputy Chief Minister M Bhatti Vikramarka
| Photo Credit:
Subrahmanyam G S 10057@Hyderabad
The proposed Goods and Services Tax (GST) rationalisation is likely to result in a revenue loss of ₹7,000 crore loss for Telangana, according to Deputy Chief Minister M Bhatti Vikramarka.
The centre should compensate for the loss of revenue to be incurred by the State Exchequer, Bhatti said. Referring to the transition from the Value Added Tax (VAT) regime to the present GST, the Deputy Chief Minister said Telangana would have garnered ₹69,379 crore revenue in 2024-25 if VAT was in force, whereas in the GST system, it was only ₹42,442 crore.
The centre had assured revenue to the States on the basis of a 14 per cent growth rate in the State Gross Domestic Product (GSDP) but the GSDP growth remained only at 7 to 8 per cent, adversely impacting the state revenue, the Minister said. Vikramarka was among the ministers of non-NDA States who met in Delhi on Friday to discuss the impact of GST rationalisation on the States’ revenue.
Bonds
The Telangana Finance Department is also in the process of auctioning government bonds to mobilise around 6,000 crore from the open market. As per the budget, the government proposed to mobilise ₹54,009 crore from the open market during 2025-26. With the current round of bond auctioning , the total loans mobiled so far though this route will reach ₹30,000 crore.
The State exchequer has been facing challenges in clearing the pending bills across departments and also will face additional strain due to the severe loss caused by recent heavy rains and floods, according to a senior official.
Published on August 30, 2025
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