Telangana Finance Minister Etela Rajender says, we lost over 1000 Cr in just the first two weeks after demonetisation in the country.
Telangana government will be going in for massive fund cuts earmarked for various sectors in financial distributions in the remaining four months of the current financial 2016 t 2017 year to cope with the fallout of demonetization in India.
TS government which had already lagged behind in meeting budgetary targets in the first 6 months due to failure in realizing expected revenues and steep increase in expenditure additional plunged into a crisis after the demonetisation announcement on November 8th, 2016.
Telangana fund distributions for most of the development programs and wellbeing schemes will now be shown only on paper without being actually consumed to avoid discomfiture for the government and backlash from the Opposition parties in the Legislature when the govt presents the annual Budget for 2017 to 2018 year and sometime in February month.
Here to begin with the government has proposed a huge cut in funds for irrigation projects, Telangana government had created a record of sorts in the country when it earmarked 25000 cr for irrigation projects in the 2016-17 year budget presented in March, 2016.
Government has now proposed to trim this to just 8000 cr representative the funds crunch being faced by the state, alike cuts in funds in the range of 20 to 25% are being future under heavy head in the Budget of TS, FM Etela Rajender said we lost over 1000 cr in just the 1st two weeks after demonetisation and the losses are expected to cross 3000 cr in the next 4 months, as per the report
Worst affected on account of fresh fund cuts would be development programmes and welfare schemes he said at media point.