The new state of Andhra Pradesh may have to face revenue deficit from the registration and stamps (R&S) department at least for a couple of years. Reason: The major share of the revenue (55% to 60%) through property registrations comes from the ten Telangana districts, especially from Hyderabad and Ranga Reddy districts.
Official said apart from excise and commercial taxes, earning from the registration and stamps department is one of the major sources of revenue for the state government. The R&S department had earned about Rs 4,500 crore revenue to the state government in the last few years. In the 2013-14 financial year, the department had deposited Rs 4,300 crore (net revenue) while it was Rs 5,098 crore in the 2012-13 financial year.
After the state bifurcation, going by the past revenues, residuary Andhra Pradesh may get about Rs 2,000 crore from the 324 sub-registrar offices located in the 13 Seemandhra districts through stamp duty and property registrations in a year while Telangana is expected to get a revenue of Rs 2,500 crore per year from the 114 sub-registrar offices in the 10 districts of Telangana.
Sources said the revenue share from Telangana is slowly on the rise for the past four years. While revenue from property registrations in Telangana districts was a mere Rs 1,814 crore during 2010-11 year, it rose to Rs 2,820 crore in 2012-13 year. But it fell to Rs 2,598 crore in 2013-14.
“The property registrations may increase in Hyderabad and Ranga Reddy districts now. There was a dip in the registrations in the past one year due to uncertainty over the separate state agitation. Similarly, Andhra Pradesh too may witness an increase in the number of property registrations after the finalization of its state capital,” a joint inspector general of R&S department said.
Officials said there was a decline in property registrations since July, 2013 and the revenue dropped to Rs 5,034 crore (including the local body share) against the target of Rs 8,018 crore for the entire 2013-14 year and the target achievement was just 63%.
Source: The Times of India, Hyderabad