The State had seen a steep fall in the tax revenue in the last three months of the YSR Congress government. This is mostly because of the withdrawal of sand supply in the State by the new government to come up with a new policy. The new sand policy is likely to be rolled out from September 5, and the government had made all arrangements. However, because of this decision and the decisions like retendering on irrigation projects in the State, withdrawal of the works in Amaravati resulted in the fall of cement, iron and steel trade in the State. This had brought down the tax revenue of the State from 14.5 per cent to 5.3 per cent in the last three months. The State exchequer had thus lost heavily in the first three months of the new government.
It is high time that the Jaganmohan Reddy government resumes the sand supply and revives the construction activity, so as to have comfortable tax revenue. As there are no other revenue sources for the government, it cannot experiment on tax revenue as such an experiment any further would push the state into deep financial crisis.
The government is also working towards going for the total prohibition losing heavily on the excise revenue. There is no other programme with the government to compensate this revenue. The state would require more industries and companies in the service sector to give revenue besides the engineering works in large scale. If the government fails to go on these lines, it cannot supplement its welfare schemes with revenue constantly falling.
It is to be seen how Jaganmohan Reddy government would take measures to strengthen its exchequer and make the state a promising one in the South. The previous government had raised hopes of the people projecting it as sunrise state and a destination for investors. But, this government is not going on those lines though making attempts to draw investments from various sources. The chief minister had taken three months to understand various schemes and programmes of the government even at the cost of losing the tax revenue. It is now time for him to sit and start the work that would bring more revenue to the State. The construction work is key activity to generate more revenue to the State and that is linked with the government policy on sand and irrigation projects.