Telangana suffered an overall loss of ₹52,750 crore in the current financial year 2020-21 due to impact of the Covid-19 pandemic, officials told chief minister K Chandrasekhar Rao on Saturday.
During a mid-term review of the state’s financial position held at Pragathi Bhavan, the officials suggested drastic cuts in budgetary allocations to various departments this year.
According to a statement from the chief minister’s, the 2020-2021 budget proposals were prepared estimating that the state’s revenue growth rate would be 15%. “But due to Corona, the growth did not reach 15% and on the contrary the revues fell compared to last year,” the officials said.
In 2020-2021, it was estimated that the state would receive ₹67,608 crore income through taxes and non-tax resources and the budget proposals were made accordingly. But as per the current estimates the chances for this year are only ₹33,704 crore as the income. With this, the state’s own income will be reduced by ₹33,904 crore.
The officials said the state government’s share in the Central taxes had also decreased considerably. In the Union Budget it was mentioned that for 2020-2021 financial year, the Centre would allocate ₹16,727 crore to the State as its (State’s) share. According to this, the state should get ₹8363 crore for the financial year 2020-2021 from April to October. But the state received only ₹6,339 crore from the Centre. As on date there is a reduction of ₹2025 crore in the taxes. By the end of financial year 2020-2021, it is estimated that the state would get ₹11,898 Crore instead of ₹16,727 crore, which was its actual due. With this, the state would lose ₹4,829 crore, they said.
{{/usCountry}}The officials said the state government’s share in the Central taxes had also decreased considerably. In the Union Budget it was mentioned that for 2020-2021 financial year, the Centre would allocate ₹16,727 crore to the State as its (State’s) share. According to this, the state should get ₹8363 crore for the financial year 2020-2021 from April to October. But the state received only ₹6,339 crore from the Centre. As on date there is a reduction of ₹2025 crore in the taxes. By the end of financial year 2020-2021, it is estimated that the state would get ₹11,898 Crore instead of ₹16,727 crore, which was its actual due. With this, the state would lose ₹4,829 crore, they said.
{{/usCountry}}Under several centrally sponsored and assisted schemes, the state has to get ₹9,725 crore from the centre. By October, the state should have got ₹5,673 crore, but it got only ₹4,592 crore - a shortfall of ₹1,081 crore from the Centre. By end of this financial year, the state may get only ₹8,923 crore instead of ₹9,725 crore. Thus, there will be ₹802 crore cut in the centrally sponsored and assisted schemes’ funds.
Since there will be a shortfall of ₹52,750 crore in the state’s overall income, the chief minister instructed the officials concerned to fix priorities accordingly and prepare financial management plan.
The officials from the finance department also told the chief minister that there had been no financial assistance from the Centre to rehabilitate the victims of the recent rains and floods. The matter was mentioned when the topic on the Centre’s assistance for the recent rains and floods came up for discussion on Saturday at the review meeting.
Rao had written to Prime Minister Narendra Modi on October 15 stating that there was a loss of crops and properties to the extent of ₹5,000 crore due to rains and floods and requested for release of ₹1,350 crore as an immediate relief.
“The President, Vice President and the PM have expressed their shock over the heavy rains and floods. They spoke with the CM and personally inquired about the situation. The Central team also visited the state and assessed the situation. After all this, we have expected some assistance from the Centre. But as on date, not even a single rupee is released,” the officials told KCR as Rao is also known.