Empowering Telangana’s Economic Growth Through Increased Income Tax Returns Filing
In a significant development, the filing of Income Tax Returns (ITRs) from Telangana has witnessed a commendable surge, rising from 21.58 lakhs in the financial year 2019-20 to an impressive 26.92 lakhs in 2022-23. This remarkable growth of 24.75% over four years surpasses the national average of 14.75%, reflecting the state’s robust economic trajectory. Dr. G. Ranjith Reddy’s inquiry in Lok Sabha Starred Question No. 220, answered on December 18, 2023, delves into the implications of this upward trend on Telangana’s economy and the measures the government is adopting to bolster its contribution to the nation.
The surge in ITR filings from Telangana is indicative of multifaceted growth drivers, including the state’s expanding economy, increased employment opportunities, technological advancements, and enhanced tax compliance. The combined impact of these factors underscores the success of economic policies implemented, as highlighted in the response to part (b) of the question.
The government, acknowledging the pivotal role of states in national economic growth, has implemented measures to incentivize and boost their capital expenditure. Telangana, in particular, is poised to benefit from the Union Government’s ‘Scheme for Special Assistance to States for Capital Investment,’ which provides 50-year interest-free loans to state governments. This strategic financial support aims to catalyze capital expenditure, fostering economic development and contributing to the nation’s overall growth.
Additionally, the Union Government has adopted a proactive approach by frontloading tax devolution installments to state governments. This initiative enables states, including Telangana, to expedite capital spending, finance essential development projects, and allocate resources for priority initiatives. The commitment to providing a conducive financial environment underscores the government’s dedication to ensuring states become significant contributors to India’s economic prosperity.
In conclusion, the surge in ITR filings from Telangana reflects a positive economic trajectory, propelled by a combination of factors. The government’s measures to incentivize capital expenditure underscore its commitment to facilitating states in becoming dynamic engines of growth, contributing substantially to the nation’s economic development. This positive trend positions Telangana as a key player in India’s economic landscape, fostering an environment conducive to sustained growth and prosperity.
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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
STARRED QUESTION NO.220
ANSWERED ON – 18/12/2023
‘FILING OF ITRs FROM TELANGANA’
*220. DR. G. RANJITH REDDY:
Will the Minister of FINANCE be pleased to state:
(a) Whether the filing of Income Tax Returns (ITRs) from Telangana have gone up from 21.58 lakhs in 2019-20 to 26.92 lakhs in 2022-23 registering a growth of 25 per cent in four years when compared to national average of 15 per cent and if so, the details thereof.
(b) the details of inference that is likely to be drawn by the Government from filing of more ITRs from Telangana; and
(c) the manner in which Telangana is likely to be helped and pushed by the Government to contribute more to the economy of the country and become growth engine of the country.
ANSWER
THE FINANCE MINSTER
(SMT. NIRMALA SITHARAMN)
(a), (b) & (c): A statement is laid on the table of the house:
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF LOK SABHA
STARRED QUESTION NO. *220 FOR ANSWER ON 18th DECEMBER 2023
REGARDING ‘FILING OF ITRs FROM TELANGANA’
(a) The filing of Income Tax Returns (ITRs) from Telangana have gone up from 21.58 lakhs in F.Y. 2019-20 to 26.92 lakhs in F.Y. 2022-23 registering a growth of 24.75 per cent in four years. At national level ITRs has gone up from 6.78 Crore in F.Y. 2019-20 to 7.78Cr. in F.Y. 2022-23 registering a growth of 14.75 per cent.
(b) The increase in filing of ITRs in Telangana would be due to a combination of factors such as economic growth, employments opportunities, technological developments, better tax compliance etc.
(c) The government accords great importance to the growth of all state economies including Telangana and growth in filing in ITRs, as highlighted in answer to part (a), reflects success of economic policies implemented.
The Government has undertaken various measures to incentivize the States, including Telangana, to increase their capital expenditure and contribute more to the economic growth of the country. The Union Government has provided 50-year interest-free loans to the state governments under the ‘Scheme for Special Assistance to States for Capital Investment’ for the last three years to enhance their capital expenditure. An overall sum of Rs. 1.3 lakh crore has been budgeted for the Scheme during the ongoing financial year 2023-24.
In addition, tax devolution installments to the State Governments have been frontloaded to enable them to speed up capital spending, finance their development related expenditure and also to make available resources for priority projects.
