Telangana CM KCR Orders Budget Cuts

Due to the economic slowdown in the country, the state has not been receiving 14 percent of GST collections, a release from the Telangana CM K Chandrasekhar Rao's office said.

The CM held a meeting with officials on the state’s financial position, funds due to the Centre and other issues.

KCR has written to Union Finance Minister Nirmala Sitharaman seeking the release of funds, as the substantial funds are due from the Centre.

K Chandrasekhar Rao said, due to lack of funds, implementing many welfare schemes can run into problems in the state.

KCR plans to visit Delhi soon to meet PM Narendra Modi and Sitharaman to inform them of the difficulties that arose, as there is no release of funds from the Centre.

The CM has instructed the Principal Secretary (Finance) to reduce funds for all departments in harmony with the decrease in funds from the Centre and asked all departments to cut down on outflow.

For the financial year 2019-20, for a State under the tax sharing, the Centre announced in its budget that it would give Rs 19,719 crore. This is 6.2 percent more than the apportionments made in the 2018-19 Budget of Rs 18,560 crore.

Though, in the last 6 months, the Centre has given only Rs 10,304 crore only as of the tax share, the press release notes.

The state claims it has got an 8.3% lesser amount in its tax share account.