Telangana incurred a loss of Rs 57,750 crores in the 2020-21 financial year due to Covid-19 pandemic and it is now necessary to make amendments in the current year’s budget, said Chief Minister K Chandrashekhar Rao.
The CM held a review meeting with the finance department to assess the state’s financial position and midterm review of the 2020-2021 budget on Saturday. In the meeting, officials explained the prevailing financial situation where the state government received Rs 39,608 crore revenue for seven months from April to October in 2019-20 through taxes and other non-tax resources. To add, till October 2020-21, the state received only 33,704 crore.
The officials also informed about the budget proposals of 2020-21 and said they were prepared on an estimate that the state’s revenue growth rate would be 15 per cent. But due to the pandemic, the growth did not reach 15 per cent and on the contrary, the revenues drastically fell compared to last year.
In 2020-2021, it was estimated that the state would receive Rs 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 Rs 33,704 crore as the income. With this, the state’s income will be reduced by Rs 33,904 Crore. The finance department officials added.
Further, they added that the state government’s share in the central taxes has also decreased considerably. In the 2020-21 Union Budget, it is mentioned that the Centre would allocate Rs 16,727 Crore to the state. And the state should get Rs 8,363 Crore but the state received only Rs 6,339 Crore. As on date, there is a reduction of Rs 2,025 Crore in the taxes. By the end of the financial year 2020-2021, the state would incur a loss of Rs 4,829 crore as it would get Rs 11,898 crore instead of Rs 16,727 crore which was due.
Along with the designated amount in the union budget, under several centrally sponsored and assisted schemes, the Centre also had to give Rs 9,725 Crore to the state. Accordingly, by October the state should have Rs 5.673 Crore but only Rs 4,592 Crore was received. There is a recorded loss of Rs 1,081 crore.
However, by the end of this financial year, the state may get Rs 8,923 crore instead of Rs 9,725 crore and there will be Rs 802 crore cut in the centre-sponsored and assisted schemes’ funds.
Due to the shortfall of Rs 52,750 crore in the overall income, CM instructed officials to fix priorities and prepare a financial management plan. The officials added that so far no financial aid has been provided by the Centre for the measures taken to rehabilitate the victims of the recent rains and floods in the state.
KCR added it was once again proved that the Centre makes empty promises and does not take any action.