HYDERABAD: Telangana's revenues are expected to decrease by Rs 52,750 crore this financial year due to the Covid-19 pandemic, Chief Minister K Chandrasekhar Rao said on Saturday. The estimated decrease includes the State’s own revenue and cut in Central funds. Rao arrived at this conclusion after a midterm review of the 2020-21 Budget with officials of the Finance Department at Pragathi Bhavan. With this, he has decided to make certain amendments in the current year’s budget allocations. He has directed the officials to set priorities and prepare a suitable financial management plan.
No impact on welfare schemes
The estimated revenue receipts for 2020-21 were Rs 1,43,151.94 crore. But if the revenues decrease by Rs 52,750 crore, the revenue receipts would be around Rs 90,401 crore, which means only 63 per cent realisation of the revenue this year as against the Budget estimates. Nevertheless, this would not affect the government’s welfare measures.
The expenditure on Aasara pensions, Rythu Bandhu and charged account expenditure, such as salaries of government employees, would be met. According to sources, the government cannot take up new tasks, especially capital work. Road repairs and other construction work would be stalled in the next six months.
TS not getting its share in Central taxes
According to officials, the nontax revenue in 2020-21 till October was just Rs 33,704 crore as opposed to Rs 39,608 crore in 2019-20, i.e. Rs 6,000 crore less. At the time of presenting the Budget this year, it was estimated that the growth rate would be 15 per cent. But this has not turned out as expected. In the 2020-21 Budget, it was estimated that the tax and nontax revenue would be Rs 1,15,900 crore. But, the State is now estimating that it would get only Rs 68,781 crore.
Thus, the shortfall in tax and non-tax revenue would be Rs 47,119 crore. Besides, Telangana has not been getting the estimated share in Central taxes. It was mentioned in the Union Budget that Telangana’s share in Central taxes is Rs 16,727 crore and the State has to receive Rs 8,363 crore from April to October. But it has received only Rs 6,339 crore, which is Rs 2,025 crore less. In this year, the State may get only Rs 11,898 crore in Central taxes, a massive cut of Rs 4,829 crore.
Under the Centrally Sponsored Schemes (CSS), Telangana has to receive Rs 9,725 crore. Of this, till October, it has to get Rs 5,673 crore but received only Rs 4,592 crore, a shortage of Rs 1,081 crore. The officials have estimated that by the end of this year, the State may get Rs 8,923 crore against Rs 9,725 crore under Centrally Sponsored Schemes. In all, the shortage in Centrally Sponsored Schemes funds would be Rs 802 crore.
TS GOVT GOT ONLY `4,592 CR FOR CSS
Under the Centrally Sponsored Schemes (CSS), Telangana has to receive `9,725 crore. Of this, till October this year, it had to get `5,673 crore but the State received only `4,592 crore, a shortage of `1,081 crore. The officials have estimated that by the end of this year, the State may get `8,923 crore against `9,725 crore under CSS. In all, the shortage in the CSS funds would be `802 crore