COVID-19: Telangana to lose Rs. 4,000 Crore revenues
Hyderabad, March 28: The ongoing lockdown as part of measures to prevent spread of Coronavirus is all set to shatter the economy of Telangana State. According to rough estimates, the lockdown, since March 22, has resulted in losses of nearly Rs. 4,000 crore.
The revenues under Goods and Service Tax (GST), Stamps and Registration, Land Revenue, Sales Tax and State Excise Duties is quite negligible or nil. On an average, Telangana gets Tax Revenues of about Rs. 150 crore per day. This has decreased by less than Rs. 10 crore per day. Therefore, the overall losses till the end of lockdown period on April 15 would be around Rs. 1200-1500 crore.
State Government is also going to miss the target of earning Rs. 16,000 crore next financial year through taxes on sale of liquor. It already lost nearly Rs. 350 crore in the last six days. Similarly, the Stamps and Registrations Department, which earns a little over Rs. 20 crore per day, would suffer losses of at least Rs. 250 crore due to total lockdown and closure of all establishments. The Transport Department too will suffer losses of over Rs. 1,000 due to complete ban on movement of all public and private vehicles. It is losing revenues from permits and other taxes.
All other revenue-earning departments like Tourism, Mining, etc., are bound to suffer huge losses.
Medicines, equipment to cost hundreds of crores
Further, the State Government would need to spend additional amount on medicare, distribution of rice and cash to the white ration card holders, maintenance of thousands of personnel from police, health and other departments during the lockdown period and other expenses. Chief Minister K. Chandrashekhar Rao has already announced that the State Government was making arrangements to treat nearly 60,000 patients if the situation due to Coronavirus (COVID-19) turns worse in the coming days. The government will have to spend huge amount on procurement of testing kits, ventilators, ICU units and other medical equipment and disposables.
Therefore, the Coronavirus (COVID-19) will leave a bad impact on the State’s economy and disrupt the financial plans made in the annual budget 2020-21 which was presented by Finance Minister T. Harish Rao.