Review on Telangana State’s Economic Situation

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Chief Minister Sri K. Chandrashekar Rao held a review meeting at Pragathi Bhavan here on Wednesday on the State’s economic situation. He discussed the strategy to be planned due to the steep decrease in the state’s income. Chief Secretary to the government Sri Somesh Kumar, Principal Secretary (Finance) Sri Ramakrishna Rao, CM Principal Secretary Sri Narsing Rao and other senior officials participated.

“Telangana state should get Rs 12,000 Crore income every month. But the entire income fell flat due to the lockdown. In May month, the State received Rs 3,100Crore, which includes the state’s share in the central taxes, which is Rs 982 Crore. Though the state government has given some relaxations to the lockdown guidelines, but the income did not increase substantially. Income from Transport, registration and other departments was also not much. As a result, the government received only some income. We have to cater to all our needs with this meagre income. The state government has to pay debt installments to the tune of Rs 37,400 Crore per year. These installments to be paid every month without fail. The State has requested the centre to re-schedule the loans. But the Centre did not take any action in this regard. With this, the state has no option but to pay the installments. Though there was an increase in the FRBM Limits by the Centre, the conditions imposed by the Central government additional loans could not be raised. If the salaries of the employees and pensions were paid, the expenditure would be more than Rs 3000 Crore. The entire treasury will be empty. Henceforth no payment can be made nor any work can be undertaken. Hence we have to adopt a proper strategy, “ the CM said.

Due to the severe economic situation in the State, the government has taken the following decisions:

• To pay promptly the loan installments.

• To pay Asara pensions as it is

• To give the poor 12 Kgs of rice during June in the backdrop of the lockdown.

• Due to relaxations are given to the lockdown guidelines, labourers and workers will get their daily work; hence Rs 1500 cash will not be paid to them from June.

• The deduction of 75 percent in the salaries of the public representatives, 60 percent of the All India Service officers, 50 percent of the government employees salaries, 25 percent of the pensions will continue in the month of May also. For outsourcing and contract workers, there will be a 10 percent cut in their salaries in May too.