Darmashkian
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Telangana plunges into its first financial crisis
HYDERABAD: After successfully navigating the pitfalls of bifurcation without any serious financial concerns -- and in fact being termed one of the richest states by the 14th Finance Commission a few months ago -- Telangana, for the first time, is facing a serious financial crisis now.
The situation is bad enough that the government has issued oral instructions to all its departments not to claim or submit any bills except those related to salaries until further orders.
The crisis has been brought about due to the deduction of Rs 1,274 crore by the income tax department through the Reserve Bank of India (RBI) on June 26. The amount was deducted from the state account towards payment of the alleged income tax liability of the AP Beverages Corporation Limited (APBCL).
With the sudden depletion of funds, the first task of the government was to ensure timely payment of salaries and pensions for June, which it managed to do comfortably. In all, government paid about Rs 1,500 crore under this head.
Yet another huge bill that the government had to pay was Rs 4,250 crore towards this year's instalment for last year's farm loan waiver. However, with its kitty hit by the IT department withdrawal, the government made a part payment of about Rs 2,200 crore. The balance is expected to be paid next month.
With its coffers nearly empty after the payment of a portion of the farm loan dues to the banks, the government has now issued instructions to all departments that bills related to travel and dearness allowance as well as dues to contractors and other government expenditure deemed not pressing, should not be paid until further orders. These expenses come to about Rs 2,000 crore each month.
"Urgent works like arrangements for the Godavari Pushkarams will be considered for payments," a finance department official told TOI.
The government, meanwhile, is reportedly working out various options to overcome the crisis. Officials say that the state government was not at fault regarding payment of IT dues owed by the APBCL. In united AP, APBCL was carrying out wholesale trading of IMFL and the income tax was assessed on the corporation's revenue.
The department initiated proceedings claiming dues of Rs 2,939 crore for 2012-13 and 2013-14 financial years. Similar claims by the income tax department are pending with the high court of Hyderabad. On the request of income tax department, RBI deducted Rs 1274 crore from the account of state in the last week of June.
KTR meets Jaitley
In the wake of these developments, information technology minister K Taraka Rama Rao went to New Delhi and met Union finance minister Arun Jaitley on June 27 and urged that the IT department be directed to refund the amount to the state government. In its representation, the state government claimed that the deduction caused financial crisis in the state and the government was unable to pay salaries and meet day-to-day administrative expenses. The government claimed the action of both RBI and income tax department was illegal and against the judgment of the high court and also against the principles of natural justice.
Telangana plunges into its first financial crisis - The Times of India
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Lokesh Attacks on KCR for Poor Governance
As per the reports, the Reserve Bank of India has confiscated a whopping Rs 1260 Crore, the Income Tax arriers which the Telangana State had been evading for a while. Apart from this, the government was compelled to release Rs 2250 Crore to banks for the agricultural loan waiver. And for salaries of government employees another Rs 1000 Crore was required. Despite several attempts including putting pressure on Central govt, RBI is in no mood to budge pushing TS govt into the crisis. All these seem to have led to a financial crunch. With this TS government is in dilemma on how to gather funds for events including Ramzan celebrations which government vowed to do on grand note. But insufficient funds are biggest stumbling block and TS govt is mulling over to issue bonds to raise money.
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RBI Diverted Rs 1,274 cr Of Telangana Funds? | Tealgnana | TDP
Recently, Reserve Bank of India (RBI) diverted funds to the tune of Rs 1, 274 crore from its account to the Income Tax department as Telangana Government hasn't paid the arrears of AP Beverages Corporation.
After Minister for IT Mr. KTR and Telangana Chief Secretary Rajiv Sharma explained about how tough it is to meet the monthly expenditure after RBI's recent move,
Finance Minister Arun Jaitley promised to refund the money within two days but that never happened. While the Revenue Deficit of Telangana stood at Rs 1,220 crore, It has now gone up to Rs 2,550 crore with RBI's move. -
Even the TDP-pappu is attacking KCR -_-!!
The 2nd Richest state in India(after bifurcation)[in KCR's own words] is now suffering a financial crisis & that too only after a year -_- . I don't know whether I should laugh or cry regarding this piece of news(I'm a Hyderabadi)
Is this the Bangaru Telanana you were talking about?? Thank you so much KCR -_-
& Please let's not blame Andhra, Kammas or CBN for this
@Georgeclark @Echo_419 @magudi @levina @Bang Galore @itachiii @scionoftheindus @Srinivas @sree45
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Also let's talk about the garbage crisis Hyderabad is facing, @Echo_419 , it's just as bad as Delhi, from what I've heard.
Garbage Piles up Across the City as Sanitation Workers Continue Strike -The New Indian Express
Hyderabad municipal sanitary employees' strike enters 7th day
So much for that Swacch Telangana, Swacch Hyderabad campaign of KCR's. -_-
That was a scheme which I truly appreciated & felt should be replicated by other CMs, but now that labourers are on a strike & the roads are full of garbage, all those efforts have become useless.
Tweets from TG-BJP supporters:-
Ravi on Twitter: "@Modi4India @Kreasy check this http://t.co/1DXG6fIC7i"
HYDERABAD: After successfully navigating the pitfalls of bifurcation without any serious financial concerns -- and in fact being termed one of the richest states by the 14th Finance Commission a few months ago -- Telangana, for the first time, is facing a serious financial crisis now.
The situation is bad enough that the government has issued oral instructions to all its departments not to claim or submit any bills except those related to salaries until further orders.
The crisis has been brought about due to the deduction of Rs 1,274 crore by the income tax department through the Reserve Bank of India (RBI) on June 26. The amount was deducted from the state account towards payment of the alleged income tax liability of the AP Beverages Corporation Limited (APBCL).
With the sudden depletion of funds, the first task of the government was to ensure timely payment of salaries and pensions for June, which it managed to do comfortably. In all, government paid about Rs 1,500 crore under this head.
Yet another huge bill that the government had to pay was Rs 4,250 crore towards this year's instalment for last year's farm loan waiver. However, with its kitty hit by the IT department withdrawal, the government made a part payment of about Rs 2,200 crore. The balance is expected to be paid next month.
With its coffers nearly empty after the payment of a portion of the farm loan dues to the banks, the government has now issued instructions to all departments that bills related to travel and dearness allowance as well as dues to contractors and other government expenditure deemed not pressing, should not be paid until further orders. These expenses come to about Rs 2,000 crore each month.
"Urgent works like arrangements for the Godavari Pushkarams will be considered for payments," a finance department official told TOI.
The government, meanwhile, is reportedly working out various options to overcome the crisis. Officials say that the state government was not at fault regarding payment of IT dues owed by the APBCL. In united AP, APBCL was carrying out wholesale trading of IMFL and the income tax was assessed on the corporation's revenue.
The department initiated proceedings claiming dues of Rs 2,939 crore for 2012-13 and 2013-14 financial years. Similar claims by the income tax department are pending with the high court of Hyderabad. On the request of income tax department, RBI deducted Rs 1274 crore from the account of state in the last week of June.
KTR meets Jaitley
In the wake of these developments, information technology minister K Taraka Rama Rao went to New Delhi and met Union finance minister Arun Jaitley on June 27 and urged that the IT department be directed to refund the amount to the state government. In its representation, the state government claimed that the deduction caused financial crisis in the state and the government was unable to pay salaries and meet day-to-day administrative expenses. The government claimed the action of both RBI and income tax department was illegal and against the judgment of the high court and also against the principles of natural justice.
Telangana plunges into its first financial crisis - The Times of India
-----------------------------------------------------------------------------------------------------------------------------------------
Lokesh Attacks on KCR for Poor Governance
As per the reports, the Reserve Bank of India has confiscated a whopping Rs 1260 Crore, the Income Tax arriers which the Telangana State had been evading for a while. Apart from this, the government was compelled to release Rs 2250 Crore to banks for the agricultural loan waiver. And for salaries of government employees another Rs 1000 Crore was required. Despite several attempts including putting pressure on Central govt, RBI is in no mood to budge pushing TS govt into the crisis. All these seem to have led to a financial crunch. With this TS government is in dilemma on how to gather funds for events including Ramzan celebrations which government vowed to do on grand note. But insufficient funds are biggest stumbling block and TS govt is mulling over to issue bonds to raise money.
-----------------------------------------------------------------------------------------------------------------------------------------
RBI Diverted Rs 1,274 cr Of Telangana Funds? | Tealgnana | TDP
Recently, Reserve Bank of India (RBI) diverted funds to the tune of Rs 1, 274 crore from its account to the Income Tax department as Telangana Government hasn't paid the arrears of AP Beverages Corporation.
After Minister for IT Mr. KTR and Telangana Chief Secretary Rajiv Sharma explained about how tough it is to meet the monthly expenditure after RBI's recent move,
Finance Minister Arun Jaitley promised to refund the money within two days but that never happened. While the Revenue Deficit of Telangana stood at Rs 1,220 crore, It has now gone up to Rs 2,550 crore with RBI's move. -
Even the TDP-pappu is attacking KCR -_-!!
The 2nd Richest state in India(after bifurcation)[in KCR's own words] is now suffering a financial crisis & that too only after a year -_- . I don't know whether I should laugh or cry regarding this piece of news(I'm a Hyderabadi)
Is this the Bangaru Telanana you were talking about?? Thank you so much KCR -_-
& Please let's not blame Andhra, Kammas or CBN for this
@Georgeclark @Echo_419 @magudi @levina @Bang Galore @itachiii @scionoftheindus @Srinivas @sree45
---------------------------------------------------------------------------------------------------------------------------------------
Also let's talk about the garbage crisis Hyderabad is facing, @Echo_419 , it's just as bad as Delhi, from what I've heard.
Garbage Piles up Across the City as Sanitation Workers Continue Strike -The New Indian Express
Hyderabad municipal sanitary employees' strike enters 7th day
So much for that Swacch Telangana, Swacch Hyderabad campaign of KCR's. -_-
That was a scheme which I truly appreciated & felt should be replicated by other CMs, but now that labourers are on a strike & the roads are full of garbage, all those efforts have become useless.
Tweets from TG-BJP supporters:-
Ravi on Twitter: "@Modi4India @Kreasy check this http://t.co/1DXG6fIC7i"
