Slowdown in economy hurting Telangana State finances: Harish Rao

Telangana State is grappling with a revenue shortfall of Rs 8,000 crore mainly on account of Centre not releasing GST dues and slashing of centrally sponsored schemes and a general economic slowdown are also reasons for the shortfall, said Finance Minister T Harish Rao, here on Monday.

“We are seeing a shortfall of Rs 7,000-8,000 crore. It is becoming difficult to manage. We have grown at 6.5 to 7 per cent in the last nine months this fiscal. Previously it was 22 per cent. Many States have a seen a de-growth,” he added. “From the past six quarters, India’s GDP growth rate came down from 8 to 4 plus per cent. Some say even that is managed and it is actually 3 per cent or or 3.8 per cent,” he said while interacting with industrialists at the Federation of Telangana Chamber of Commerce and Industry (FTCCI).

He said Telangana was hopeful of settling incentives to industries by end of this fiscal year or in the ensuing financial year. The State would also work towards a



one-time settlement for issues related to VAT from the pre-GST era, he added. The Finance Minister said the productivity had come down, which in turn was a result of rising unemployment due to lower demand. He sought suggestions from the industry on ways to improve State revenues. Industries Minister KT Rama Rao was following up on the pending dues to the industries.

Harish Rao said the Government would shortly unveil a food processing policy as farm productivity was on the rise due to availability of irrigation water from the Kaleshwaram Project. Most of the 46,000 tanks in the State have been revived under the Mission Kakatiya scheme to store 250 tmc of water. About 20 lakh acres had been brought back into cultivation from the earlier five lakh acre, said the Finance Minister and added that about 70 lakh metric tonne paddy was being produced in kharif. Agro-based industries would get a boost in days to come and 145 clusters had been identified, he said.