Hyderabad: The TS government has directed all departments to send Budget proposals for the 2017-18 financial year keeping in view the expected shortfall of revenue due to demonetisation and the Goods & Service Tax to be implemented from July 2017.
TS Chief Secretary S.P. Singh has given a powerpoint presentation to all secretaries on preparing the Budget in the new format proposed by the Centre for the forthcoming financial year.
Mr Singh told the secretaries that after demonetisation on November 8 last year, revenue from the stamps and registration department had fallen by half, earning from the transport department had come down due to the decrease in the sale of vehicles.
He said that in the initial months after the introduction of GST, state revenue through VAT could be affected. The Centre has assured that it will compensate state governments for the revenue loss caused by implementing the GST, but it is not known when the funds would be released.
Mr Singh said in the new format, expenditure would be divided into two heads. Establishment, maintenance and interest payments would be categorised as Nirvahana Paddu (revenue expenditure) and spending on schemes will come under Pragati Paddu (capital expenditure head).
He said all expenditure other than Nirvahana Paddu, like development expenditure, subsidies, grants and scholarships, would be classified as Pragati Paddu, as also food subsidy.
