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Lockdown in May caused Rs 4,100-crore revenue loss: Telangana Finance Minister

Our Bureau Hyderabad | Updated on June 12, 2021

Finance Minister T. Harish Rao   -  The Hindu

State urges Centre to raise FRBM limit to 5 per cent to give a boost to financial activities

Telangana has asked the Centre to increase the FRBM (Fiscal Responsibility and Budget Management) limit to five per cent from the present four per cent, to help it tide over the financial crisis.

Telangana Finance Minister, T Harish Rao, said the State suffered a revenue loss of Rs 4,100 crore because of the lockdown imposed in the May.

“The State is under lockdown because of the Covid second wave. We are facing severe financial problems,” Rao said.

Taking part in the 44th GST Council Meet chaired by Finance Minister Nirmala Sitharaman through video-conference on Saturday, he said raising the FRBM limit would help boost financial activities in the country in general and the State in particular.

An increase in the FRBM limit would help the State raise more funds to compensate for the revenue loss caused by the pandemic. “It will also drive generation of jobs,” he pointed out.

“We don’t how long the lockdown will continue. The State needs support to tide over the financial crunch. We appeal to the Centre to increase the FRBM limit to five per cent,” he said.

Meanwhile, the State has endorsed the recommendations of the GST Council’s Group of Ministers, set up to take a call on tax relief for Covid essentials.

Published on June 12, 2021

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