Officials today that the overall loss to the state government in the 2020-2021 financial year due to the impact of the coronavirus would amount to Rs 52,750 crore.
Officials from the finance department today informed Telangana Chief Minister K Chandrashekar Rao that the overall loss to the state government in the 2020-2021 financial year due to the impact of the coronavirus amounted to Rs 52,750 crore.
The officials suggested that due to the heavy fall in the revenues, it was necessary to make alterations and amendments to the state's 2020-2021 budget.
These figures and suggestions were given at a review meeting that the CM had convened with the officials on Saturday at Pragathi Bhavan to assess the state's losses due to the pandemic.
The officials said that the state had received Rs 39,608 crore in revenues for the seven months from April to October for the financial year 2019-20 through taxes and other non-tax resources. However, the state had received only 33,704 crore till October in 2020-21, they said.
The 2020-2021 budget proposals had been prepared estimating that the state's revenue growth rate would be 15%. But due to Covid-19, forget growth, the state's revenues had fallen compared to the last year. The state's own income was projected to reduce by Rs 33,904 crore for the full year, they said.
The state's share in the central taxes had also decreased considerably, the officials said. In the union budget it was mentioned that for 2020-2021 the Centre would allocate Rs 16,727 crore to Telangana as its (the state's) share. According to this, the state should have gotten Rs 8,363 crore for 2020-2021 from April to October. But the state had received only Rs 6,339 crore - a reduction of Rs 2,025 crore. And by the end of the financial year 2020-2021 it was estimated that the state would get only Rs 11,898 crore instead of the Rs 16,727 crore. Thus, the state would lose Rs 4,829 crore in all.
Also, under several centrally-sponsored and centrally-assisted schemes, for 2020-2021 the Centre was to give Rs 9,725 crore to the state. By this, the state should have gotten Rs 5,673 crore by October, but had received only Rs 4,592 crore. There was thus a loss of Rs 1,081 crore from the funds that were supposed to have been received by October. And by end of the financial year, the state would most likely receive only Rs 8,923 crore instead of the Rs 9,725 crore. There would thus be a Rs 802 crore deficit in the funds for the centrally-sponsored and centrally-assisted schemes.
The CM said that since there would be a shortfall of Rs 52,750 crore in the state's overall income, he would instruct the officials concerned to fix priorities accordingly and prepare a financial management plan.