Telangana to revise budget for FY 2020-21 amid revenue drop due to covid

The Telangana authorities has determined to revise its annual funds for the monetary 12 months 2020-2021 amid a shortfall in revenues because of the Covid-19 pandemic, officers aware of the matter stated.

Following a gathering with officers of the state’s finance ministry on Friday, chief minister Okay Chandrasekhar Rao has instructed officers to take up an interim assessment of the state’s funds, an official launch from the CM’s workplace said.

“The state’s revenue and income have been reduced severely due to the lockdown imposed due to Corona pandemic. There was cut in the funds from the Centre to the State. The Central GDP has fallen to (Minus) -24 percent. This had a major impact on the states,” the assertion cited the chief minister as saying.

Under these circumstances, KCR stated, the state needed to put together estimates on how a lot funds are literally obtainable and the way a lot funds could be allotted to the departments. “Review the entire state budget and submit a report to the government,” the CM instructed officers.

On March 8, state finance minister T Harish Rao had introduced the state’s annual funds with an outlay of Rs 1,82,914 crore, with a income surplus of Rs 4,482 crore. The funds projected a income expenditure of Rs 1,38,669 crore and capital expenditure of Rs 22,061 crore.

The chief minister has additionally proposed to make modifications within the present technique of asserting dearness allowance (DA) to the state authorities workers and pensioners, officers who attended Friday’s assembly stated on situation of anonymity.

As on date, DA is being paid to state authorities workers in accordance with the choice taken by the Centre.

The CM stated hereafter, the state would announce the DA as soon as in six months with out ready for the choice of the Centre. “Changes could be made in the instalments at later stage, depending on the Central formula,” he stated.