The KCR government is in a fix. With the time for the presentation of the budget fast approaching, the Telangana government is unable to make both ends meet. The slew of welfare schemes and the salaries of the employees are eating into 89 per cent of the income. The revenues are dwindling. At this rate, the Government is left with only two choices â either to hike the taxes or sell of government lands. What will the KCR government do?
Schemes like Rythu Bandhu and pensions are proving to be millstones around the TRS government's neck. To add to the woes, salaries of the government employees and pensions to the retired employees too is turning out to be a huge burden. The government is facing the problem of revenue crunch. Corona lockdown and the complete halt of economic activity for months has taken its toll on the Government.
The biggest dilemma is whether to hike the taxes, cess and duties to mop up additional revenue. Also, the government is mulling hiking the registration fee. But, this would be an unpopular decision that could cost the TRS of popular support. With a slew of elections coming in near future, can the TRS government afford it?
Starting from this fiscal, the state government has to pay Rs 16000 crore towards loan repayment. This amount is equal to the amount spent on Rythu Bandhu. Sources say that the government may plan to sell off some government lands to mop up revenues. If that happens, there would be an outrage and the government has to face a lot of flak from the people. How will FinMin Harish Rao balance the income and expenditure? This question is tormenting the government to no end these days.
Schemes like Rythu Bandhu and pensions are proving to be millstones around the TRS government's neck. To add to the woes, salaries of the government employees and pensions to the retired employees too is turning out to be a huge burden. The government is facing the problem of revenue crunch. Corona lockdown and the complete halt of economic activity for months has taken its toll on the Government.
The biggest dilemma is whether to hike the taxes, cess and duties to mop up additional revenue. Also, the government is mulling hiking the registration fee. But, this would be an unpopular decision that could cost the TRS of popular support. With a slew of elections coming in near future, can the TRS government afford it?
Starting from this fiscal, the state government has to pay Rs 16000 crore towards loan repayment. This amount is equal to the amount spent on Rythu Bandhu. Sources say that the government may plan to sell off some government lands to mop up revenues. If that happens, there would be an outrage and the government has to face a lot of flak from the people. How will FinMin Harish Rao balance the income and expenditure? This question is tormenting the government to no end these days.