Telangana tops Indian states in Own Tax Revenue: Economic Survey

Telangana topped other Indian states with 88 per cent in own tax revenue (OTR), between April – November last year, followed by Karnataka and Haryana at 86 per cent each, Economic Survey 2024-25 said on Friday, January 31.

Telangana is among the top three states in terms of high irrigation coverage of their gross cropped area with 86 percent. Punjab tops the chart with 98 per cent followed by Haryana-94 percent, the survey said.

For 15 states, OTR accounted for more than half of their total tax receipts, the highest being Telangana at 88 percent, followed by Karnataka and Haryana at 86 percent each, it said.

The Economic Survey cited WE Hub – The Women Entrepreneurs Hub in Hyderabad as a good example of the state on how the support of the government can help women’s entrepreneurship flourish.

WE Hub was started with the mission to ensure that all women entrepreneurs in the country have access to technical, financial, governmental, and policy support required to start up, scale up, sustain, and accelerate with global market access.

It has raised Rs 177 crore in funding. As many as 6376 start-ups and SMEs have been incubated engaging around 7828 entrepreneurs since inception, the Economic Survey 2024-25 said.

What is Own Tax Revenue?

Own tax revenue means Government income due to taxation within a state.

According to PRS Legislative Research’s Telangana budget analysis, the state’s total Own Tax Revenue is estimated to be Rs 1,38,181 crore in 2024-25, an increase of 24% over the revised estimate of 2023-24.

The Economic Survey also mentioned the government of Telangana’s new MSME policy which, inter-alia, envisages an increase in e-commerce penetration in MSMEs by encouraging the participation of sellers on the ONDC portal and GeM portal.

Economic Survey 2024-25: Key Highlights

• Indian economy to grow at 6.3-6.8 percent in FY26, against 6.4 percent in FY25
• Investments need to grow at 35 percent, up from 31 percent, to achieve required growth
• India’s economic fundamentals robust, backed by calibrated fiscal consolidation, stable consumption
• Risks to inflation remain on account of significant global political, economic uncertainties
• Investment activity expected to pick up, supported by higher public capex
• India needs to improve its global competitiveness through grassroots-level structural reforms
• Forex at USD 640.3 billion, sufficient to cover 10.9 months of imports and 90 per cent of external debt
• India should boost exports and attract investment by benchmarking ourselves to the rest of the world rather than our past.
• India needs a continued step-up of infrastructure investment over the next two decades for high growth
• Need to develop the manufacturing sector further and invest in emerging technologies such as AI, robotics, and biotechnology.

(With inputs from PTI)