Telangana’s revenue hit hard by lockdown: CAG

Hyderabad: The coronavirus and the imposed lockdown have resulted in immense losses for both the Central and State government. It also resulted in a huge difference in income and expenditure. While the income to the state was around 16,000 crores the expenditure was its double around 33,000.crores.

The state was in its lockdown period from March 24 to that of May 7 as imposed due to the ongoing pandemic has resulted in great economic losses. As per the report submitted to the Comptroller and Auditor General of India, the tax revenue government had earned between April and May was around 4142 crore.

However, both tax and nontax income had reduced to that of Rs 1700 crore in April. However, in the month of May, the income increased slightly to that of 3683 crores. In June, when the lockdown was given some relaxation the condition became better and the state gained income around 6510 crores. However, last year the income generated in the Telangana from April to June was over 17000 crore while it reduced to 11893 crores. Lockdown has resulted in 5797 crore losses.

Distribution of free ration rice and Rs 1500 to the ration card holders by the government of Telangana has increased the expenditure. The State has incurred (including interest payments) an expenditure of Rs 2,467.68 crore against budget estimates of Rs 2,061.18 crore up to June 2020. The State, despite the precarious financial situation that emanated from the lockdown, has incurred Rs 3490.39 crore on interest payments, Rs 4364 for salaries and wages, Rs 2011.89 on pensions, and Rs 2438.47 crore on subsidies during April, May and June months.