Economy

Telangana mulls interim review of State Budget as Covid-19 hits finances

V Rishi Kumar Hyderabad | Updated on October 26, 2020 Published on October 26, 2020

Follows major cut in fund inflows from the Centre following the coronavirus pandemic

The Telangana Government is planning to revisit the State Budget following the economies and finances of the state and country taking a major beating due to the coronavirus-induced lockdown.

Following a review meeting during the weekend, State Chief Minister K Chandrashekhar Rao has instructed the officials to conduct an interim review of the State’s Budget of 2020-21, following the major cut in the funds from the Centre following the coronavirus pandemic.

“The State’s revenue and income have been reduced severely due to the lockdown imposed by the coronavirus pandemic. There was a cut in the funds from the Centre to the State. The Central GDP has fallen to (minus) -24 per cent,” he said.

Centre transfers ₹6,000 crore to 16 States

According to the Chief Minister, this had “a major impact on the States. Under these circumstances, we have to prepare estimates on how much funds are actually available and how much funds can be allocated to the departments”.

In the given circumstances, where there has been an impact on various budgetary allocations, Rao instructed officials to “review the entire State Budget and submit a report to the government in this regard”.

GST gap: ₹2.16-lakh cr will be available to States unconditionally, says FM

Apart from the State’s own revenues from liquor sales, stamps and registration department, and other avenues, the flows from the Centre to the States were also severely affected. The GST flow too was hit. All this necessitated the need to revisit the Budget and various allocations made therein.

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Published on October 26, 2020
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