China virus casts shadow on TS Budget

Hyderabad: Coronavirus coupled with the slowdown of economy faced by the country is likely to impact the Telangana's fiscal policy in the new financial year of 2020-21 which would be presented to the State Assembly on Sunday.

The customary State Cabinet meeting that was held here to ratify the budget is said to have given its approval for an outlay between Rs 1.6 and Rs 1.7 lakh crore as against Rs 1.46 crore for 2019-20 financial year.

This would mean that there will be only a modest increase in the outlay. It is learnt that during the meeting Chief Minister K Chandrashekar Rao explained the challenges faced by the government in view of the economic slowdown and also the coronavirus effect on the national economy.

KCR discussed the fast-changing economic developments in the country and the precautions that need to be taken to mitigate the financial distress by the state government in the ensuing new financial year and ensure that all welfare schemes were implemented.

Official sources said that enough funds will be earmarked to all the welfare schemes and the developmental programmes. There is a possibility that the allocation for infrastructure schemes is likely to be reduced significantly.

The Chief Minister told the ministers to strictly adhere to financial discipline in the utilisation of funds and avoid wasteful expenditure.

The CM suggested the need for increasing revenues by hiking taxes and a decision to this effect will be taken in the new financial year.