Nation Other News 08 Nov 2020 Covid lockdown cause ...

Covid lockdown caused Rs 52,750 crore loss to Telangana

DECCAN CHRONICLE. | S A ISHAQUI
Published Nov 8, 2020, 7:08 am IST
Updated Nov 8, 2020, 7:08 am IST
Finance department officials suggest revision of budget estimates and allocations in view of the heavy fall in the revenues
During lockdown, all business activities came to a grinding halt to check the spread of Coronavirus.
 During lockdown, all business activities came to a grinding halt to check the spread of Coronavirus.

HYDERABAD: The state government has faced an overall loss of Rs 52, 750 crore revenue so far this financial year due to the Covid-19 pandemic and related lockdown. This was informed by finance department authorities to Chief Minister K Chandrashekar Rao on Saturday.

The Chief Minister was holding a meeting with officials of the finance department at Pragathi Bhavan on the state's financial condition following the pandemic and for a mid-term review of the 2020-2021 Budget. The officials suggested revision of budget estimates and allocations in view of the heavy fall in the revenues. 

 

They were instructed to fix priorities and prepare a financial management plan. The officials said the government received Rs 39,608 crore from April to October in the last fiscal through taxes and other resources. In the current fiscal, it had received Rs 33, 704 crore in the same period.

The officials said that the 2020-21 budget proposals were prepared with an estimated 15 per cent growth in the state’s revenue, but the pandemic had adversely impacted the projections. They said that Rs 67. 608 crore revenue was estimated in the current fiscal. The officials told the Chief Minister that there was a considerable decrease in the state government’s share in the Central taxes.

 

They explained that the Union Budget 2020-21 had mentioned that the Centre would allocate Rs 16,727 crore to Telangana state. The state has to get Rs 8,363 crore from April to October, but it received only Rs 6,339 crore.

The officials pointed out that as on date there is a reduction of Rs 2,025 crore in taxes and by the end of financial year it is estimated that the state would get Rs 11,898 crore instead of Rs 16,727 crore. Due to decrease in the devolution from the Centre, Telangana state would lose Rs 4,829 crore, the officials added.

 

They further pointed out that the Centre has projected Rs 9,725 crore in the 2020-21 Budget under several centrally sponsored and assisted schemes to the state, but actual receipts so far were only Rs 4,592 crore though the actual due was Rs 5,763 crore.

“There is a loss of Rs 1,081 crore from Central funds that are supposed to be received by October-end. By the end of this financial year, the state may get
Rs 8,923 crore instead of Rs 9,725 crore.  There will be an Rs 802 crore cut in funds for centrally sponsored and assisted schemes,” the officials said.

 

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Location: India, Telangana, Hyderabad




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