Hyderabad: The steep fall in revenue earnings of the state government due to the impact of demonetisation has set alarm bells ringing in both the Telugu states.
While Telangana state government has pegged loss at over Rs 6,000 crore, AP has estimated it at over Rs 4,000 crore in the next four months.
With indications of TS government’s revenues falling by a whopping 50 per cent this month alone, Chief Minister K. Chandrasekhar Rao is likely to announce some tough decisions to bail out the government from the current financial crisis.
Mr Rao has been holding meetings with senior finance officials for the past three days. He is said to be in favour of imposing drastic fund cuts for development programmes, welfare schemes, salaries and pensions.
An announcement on imposing cut in salaries for MLAs, MLCs, ministers is on the cards first before doing the same for employees to avoid criticism from TS government employees’ unions.
