Tax revenue growth decelerates under Congress rule in Telangana

After recording one of the highest growth in the country during the BRS regime, Telangana’s tax revenue has slowed markedly under the Congress government, triggering concerns over weakening revenue mobilisation and widening fiscal stress. The State registered just 11.9 per cent growth of tax revenue upto January this year, over the corresponding period last financial year.

Officials are expecting to close the year recording tax revenue growth at around 13 per cent. They did not rule out the possibility of the growth confining to single digit when the revised estimates for 2025-26 are presented in the upcoming State Budget for next financial year of 2026-27. During the same period, revenue receipts growth was at 11.75 per cent which is likely



to reach 12.5 per cent by year-end. Economists have cautioned that these numbers fell short of the high-growth trajectory seen in earlier years.

In absolute terms, tax revenue increased from Rs 1,00,129 crore in 2021-22 to Rs 1,38,582 crore in 2024-25. However, the pace of increase has slowed considerably. Revenue receipts rose from Rs 1,27,469 crore in 2021-22 to Rs 1,73,546 crore in 2024-25, while total receipts climbed from Rs 1,79,295 crore to Rs 2,34,765 crore during the same period. However, the growth momentum has weakened over last two financial years.

Upto January this year, Telangana realised tax revenue of Rs 1,26,293 crore, revenue receipts of Rs 1,38,371 crore and total receipts amounting to Rs 2,07,558 crore.