Power, GST, Revenue: Arvind Subramanian Charts Telangana’s Reform Path

In a move that underscores a shift toward data-driven governance , Telangana Chief Minister A Revanth Reddy recently held a high-level consultation with noted economist Arvind Subramanian, seeking strategic inputs to steer the state’s economy through a phase of rapid growth and rising fiscal demands. Deputy Chief Minister Mallu Bhatti Vikramarka and senior officials were part of the deliberations, which centred on power sector finances, GST revenue systems, and non-tax income streams .

Despite Telangana’s strong economic performance, the meeting highlighted underlying pressures particularly in the power sector , where subsidies and inefficiencies have significantly increased expenditure. Subramanian is learnt to have advised a shift toward targeted subsidies, improved efficiency of power distribution companies, and better cost management , stressing that unchecked spending could strain long-term fiscal stability.

On the revenue front, discussions focused on strengthening GST collections through better forecasting and compliance mechanisms . With states facing uncertainties in GST inflows, the economist recommended technology-backed monitoring and data analytics to plug leakages and improve predictability. He also flagged the potential of stamps and registration revenues , suggesting reforms in property valuation and digitisation to enhance collections without increasing the tax burden.

A central theme of Subramanian’s advice was the need for a structured fiscal roadmap . He emphasised balancing welfare commitments with growth-oriented capital expenditure , urging the state to prioritise investments that generate jobs and long-term economic returns. Moving away from ad-hoc measures, he advocated rule-based, evidence-driven policymaking to ensure consistency and resilience.

Chief Minister Revanth Reddy is said to have responded positively, acknowledging the need for course correction in key sectors while maintaining the state’s welfare focus. The participation of the finance leadership indicates that these suggestions may feed into future budgets and policy reforms .

The consultation comes even as Governor Shiv Pratap Shukla projected Telangana’s GSDP to reach ₹17.82 lakh crore in 2025–26 , with a 10.7% growth rate . The challenge now lies in ensuring that this growth is not just rapid, but also sustainable, disciplined, and future-ready .