Telangana to suffer Rs 3,000 crore loss due to demonetisation

Telangana's revenues are likely to come down by nearly Rs 3,000 crore during the current financial year as a result of demonetisation of high value currency notes.

The government on Wednesday told a central team visiting the state to study the impact of demonetisation that the state may suffer a revenue loss of Rs 540 crore every month.

Chief Secretary Rajiv Sharma and some top officials met the central team and submitted a detailed report on the impact of the scrapping of Rs 1,000 and Rs 500 notes.

He said the Centre should offer special assistance besides releasing Central Sales Tax (CST) arrears to help the state tide over the crisis.

The government briefed the central officials of the difficulties faced by the people. The Chief Secretary said the new note of Rs 2,000 was of little help due to severe shortage of small currency notes.

He wanted the central team to ensure that state was immediately supplied Rs 500 notes. The Reserve Bank of India (RBI) representatives at the meeting said the same would be done in a couple of days.

The Chief Secretary said the state needed money urgently to pay at least Rs 10,000 in cash to every government employee towards their November salaries.

He said immediate steps were also needed to pay pension to beneficiaries under government schemes.

Telangana officials urged the Centre to allow farmers to buy all the inputs with spiked currency notes.

They also suggested that the November 24 deadline for making government utility payments with old notes be extended.

The central teams visited various parts of the state to study the impact of demonetisation.