TS finances stable after demonitisation: Eatala

Finance Minister Eatala Rajender on Monday claimed that the demonitisation of high value currency notes of Rs. 1,000 and Rs. 500 had very little impact on the financial position of Telangana State.

Replying to a question raised by MIM floor leader Akbaruddin Owaisi during Question Hour in State Legislative Assembly, the Finance Minister said that the Telangana State had witnessed an increase in revenues by almost 13%. Compared to previous year, there was an increase by 22% in Sales Tax, 35% in Taxes on Vehicles while the Stamps and Registration Department recorded an increase by 56% in its revenues. If the trend continues, the minister said that the government would ensure 100% spending of amounts allocated in the budget for financial year 2016-17.

Eatala informed that from 1st April to 30th September this year, the State Government had spent Rs. 51,615 on various projects including welfare schemes. He said that the remaining budget will also be spent by March next year. He said that the governments usually spent a major portion of allocated budget in the month of February. He said there was no negative impact of imposition of GST in the State and it was expected to fetch positive results as Telangana was a consumption State and not a manufacturing State like Gujarat, Maharashtra or Tamil Nadu.

The Finance Minister denied of Telangana State facing a huge revenue deficit due to hike in salaries for employees, crop loan waiver, fee reimbursement, social security pensions and increased rice quota for BPL families. However, he said a little impact could be felt due to Dearness Allowance for employees. He said that the government spends nearly Rs. 30,000 crore on salaries and pensions while Rs. 4508 crore are spent on Aasra pensions. Of this, Rs. 2,126 crore has been released during the last six months on Aasra pensions while Rs. 3,200 crore have been allocated for rice in the current financial year.

Stating that the Telangana State had a surplus of Rs. 369 crore at the end of financial year 2014-15, he said it would be difficult to estimate on revenue deficit for the current financial year. He said that the government had so far cleared three installments of crop loan waiver scheme and the entire amount would be cleared in the next financial year. He said Rs. 131 crore have been spent on Kalyana Lakshmi schemes.