Hyderabad: The Telangana state government is banking on land and liquor to mop up its revenues while drafting its upcoming budget 2021-22. This dependence became direr in the wake of the recent Union budget, which dealt a deadly blow to Telangana by imposing cuts in tax devolution, besides levying an agricultural cess on fuel.
The state government is estimated to lose Rs 5,000 crore due to a cut in share of its tax devolution and an additional Rs 300 crore on account of the Agri cess.
Taking into account the twin losses, the state government is now seriously considering selling off government lands and increasing liquor sales, as it is left with no other option to make up for the losses incurred, according to official sources in the finance department.
With realty booming across Telangana, especially after the launch of Dharani portal in November 2020, the state government wants to encash it by putting some prime government land parcels, especially on the city’s…