Fiscal fears: Telangana Chief Minister K Chandrashekhar Rao directs officials to go for interim budget review

By: |
October 23, 2020 9:10 PM

The states revenues and income have fallen severely due to the lockdown imposed due to COVID-19 pandemic.

K Chandrashekhar Rao, K Chandrasekhar Rao, KCR, Telangana, Telangana Budget, Telangana 2020, Telangana interim budget, coronavirus, covid, covid updatesK Chandrashekhar Rao was upset that the some farmers cultivated maize despite the govt advising against it in view of rainy season as the corn would not be able to get MSP. (PTI photo)

Telangana Chief Minister K Chandrashekhar Rao has instructed the officials to undertake interim review of the states budget for the current fiscal in view of slump in revenues and cut in Central funds following COVID-19 pandemic. The states revenues and income have fallen severely due to the lockdown imposed due to COVID-19 pandemic. There was also reduction in the funds from the Centre to the state, an official release said on Friday.

“The Central GDP has fallen to (minus) -24 per cent. This had a major impact on the states. Under these circumstances, we have to prepare estimates on how much funds are actually available and how much can be allocated to the departments… Review the entire state Budget and submit a report to the government in this regard,” the release quoted Rao as saying.

A separate release from the Chief Minister’s office said maize would be purchased from farmers through paddy purchasing centres set up in villages, though it was not the governments responsibility as peasants had defied the governments earlier instructions not to cultivate the crop in the rainy season. The CM was upset that the some farmers cultivated maize despite the government advising against it in view of rainy season as the corn would not be able to get mimimum support price.

Rao said the commodity would be purchased at the rate of Rs 1,850 per quintal through the state-run Markfed and urged farmers to utilise the opportunity. Since there is no good price for the maize, the farmers who opted for the crop were on the brink of incurring losses and the state government known for pro-farmer, pro- agriculture polices now steps in to rescue the agrarians, it said.

The state government requested the farmers not to go for maize cultivation this summer as the dispensation led-by Rao will not take any responsibility (for good price), the release added.

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