Telangana government’s estimated revenue loss following the Centre’s demonetisation move is to the tune of Rs 1,000 to Rs 1,500 crore per month, state Finance Minister Etela Rajender said.”Our estimation is Rs 1,000 crore to Rs 1,500 crore loss per month. We don’t know for how many months this (revenue loss) will continue. Till lower denomination currency notes come, there will be problems. It could be three months or six months. Depends on Central government,” he told PTI.
Sources said stamps, registration, motor vehicle and commercial tax collections in particular have taken a huge hit. Chief Minister K Chandrasekhar Rao recently met Prime Minister Narendra Modi and articulated adverse impact of the demonetisation on the state’s finances, while lauding the measure for its intent.
The state government has requested the Centre for support by deferring repayment of Central loans or moratorium in some cases, and refraining from cutting the tax devolution to the state, and relaxing the fiscal responsibility and budget management norms.
Meanwhile, a senior TRS leader said his party would not join some Opposition parties, who have called to observe ‘Aakrosh Diwas’ on Monday to protest the demonetisation move.
“We appreciate the intention of Prime Minister Narendra Modi for curbing black money, but its execution needs reforms,” a party leader said.
“Ordinary people are suffering. Business, like real estate, retail and wholesale have come to a standstill,” he said, but made it clear that the party would stay away from Monday’s protest.