Telangana Economy Affected By Demonetization: CS

Telangana Chief Secretary Rajiv Sharma today directed officials to study the full extent of financial impact and implications of the demonetization of the Rs. 500 and Rs. 1,000 currency bills on various State departments.

The Chief Secretary held a high-level review meeting at the Secretariat with the heads of various departments that will face the impact of the move. Those who attended the meeting include special Chief Secretaries Pradip Chandra, S P Singh, M G Gopal, Ranjiv Acharya, S K Joshi and Ajay Mishra, CMO Principal Secretary Narsing Rao, Finance Secretary Ramakrishna Rao, Roads & Buildings Secretary Sunil Sharma, Finance Secretary Navin Mittal, Intelligence IG Navin Chand and others.

The meeting assumes significance as Chief Minister K Chandrashekar Rao reportedly expressed dismay at the demonetization for a drastic cut in revenues from various departments to the State treasury.

Following KCR's orders, Sharma has asked officials to submit a report after a conducting a scrutinized study. It is necessary to study the long-term implications caused by the Centre's decision to scrap the old notes and prepare a plan of action to tackle it, he said. The CS also asked them to monitor the financial implications on everyday transactions by meeting with relavant institutions and persons for complete information.

The CS also discussed on details of revenues the State got in the last seven months, and the effect of demonetization in November and its long-term implications.

Rajiv Sharma also touched upon the devolution of Central funds, grants, revenues in the coming three months. Registrations of assets, value added tax, excise income, transport tax, non-tax revenue and monthly expenditure are the issues discussed during the meeting.

Based on facts on revenues and the effect of demonetization, officials should prepare a plan of action, the CS told them.