Economic Slowdown Impact: Telegana State Slashed it’s 2020 Budget by 20%
Finally, the economic slowdown started showing it’s impact in the regions. Telangana Budget outlay for the financial year 2019-20 has been slashed 20 %.
The proposed expenditure for 2019-20 in the budget session of Telangana Legislative Assembly and Council declined to Rs 1,46,492.30 crore from Rs 1,82,017 crore, almost slashed by 20%, shown in the Vote On Account Budget presented before the Lok Sabha election this year.
Of 1,46,492.30, revenue expenditure is Rs 1,11,055.84 and capital expenditure is Rs 17,274.67 crore. As per the budget estimates.
The economic slowdown has adversely impacted all the sectors but Chief Minister K Chandrasekhar Rao, who presented the Budget, reiterated his government’s commitment to allocate more funds for agriculture and welfare sectors to better the lives of farmers and general public.
‘’There is a negative growth in many key sectors, which mirror the prevailing economic situation. The official data put out by the institutions connected with these sectors present a gloomy picture,’’ he said in a budget speech.
Auto industries too are in crises, both manufacturing and sales of the vehicles has come down by 10.65 per cent.
“The manufacturing of vehicles all over the country is down by 33 percent. The sale of vehicles has come down by 10.65 per cent. Since there are no buyers for the vehicles already manufactured, several top companies have stopped the production temporarily, said Rao, who presented the Budget in the Legislative Assembly, quoting Society of Indian Automobile Manufacturers (SIAM) report.
Taxes from the purchase of vehicles stopped. Sale of Petrol, diesel, and auto spare parts have also declined resulting in a decline in VAT collections. Lakhs of people have lost their jobs and employment opportunities, he added.
He stated that around 3.5 Lakh persons lost their jobs in the automobile sector shows how severe the situation is!
The Minster also said that it was because of their efforts and rapid strides which helped the government to revive, promote and sustain the development.
“Due to rapid strides that the State made in economic growth, the Government was able to revive, promote and sustain the development of rural Telangana, agriculture, hereditary professions and trades, handloom sector etc.’’ he said.
KCR, however, assured the House that the government is committed to continue the welfare programmes for the poor people and farmers despite the existing financial crisis.