The state is in a financial crisis and reportedly not able to pay pending bills,

KCR meets governor says demonetisation is hitting the state hardFile photo: Facebook/Telangana CMO
news News Friday, November 11, 2016 - 07:47

Telangana chief minister K Chandrasekhar Rao on Thursday told governor ESL Narasimhan that the state was facing increasing financial pressure due to the recent demonetisation move by the Centre.

The Times of India reported that in a nearly two-hour long meeting with the governor at the Raj Bhavan, KCR said that the loss of revenue due to the move was anywhere between Rs 1,000 crore and Rs 2,000 crore a month.

Stating that the real estate sector as well as the excise and luxury tax collections would be affected, KCR also reportedly claimed that that the state only received Rs 585 crore this month from the Centre, instead of the mandated Rs 997 crore.

“Reducing tax devolutions in this manner severely hurt the state government's finances," TOI quotes the CM as saying.

Meanwhile, the Deccan Chronicle reported that both the Telugu states were facing a financial crisis and not paying pending bills, of around Rs 1,000 crore in Telangana and Rs 1,200 crore in Andhra. 

Stating that land transactions and the real estate business have come to a standstill, the report adds that it would take around 10 days for normalcy to return in the state.

Meanwhile, the Finance Ministry on Thursday said that old Rs 500 and Rs 1,000 notes can be used by people towards making payment for utility services like water and electricity till November 11 midnight.

"Such old notes to be accepted for payment of utility charges like water and electricity till November 11 midnight. Records to be maintained," Economic Affairs Secretary Shaktikanta Das said in a tweet.

The old Rs 500 and 1,000 notes will also be accepted for payment of fees, charges, taxes, and penalty to central and state governments, including municipalities and local bodies, Das tweeted.

The government demonetised Rs 500 and Rs 1,000 notes effective November 8 midnight. But, it announced, these notes shall not cease to be legal tender till November 11 for providing public convenience in carrying out certain emergency and urgent transactions.

A government notification had earlier said that the old Rs 500 and Rs 1,000 notes can be used for making payments in government hospitals, pharmacies in government hospitals, at railway ticketing counters, ticket counters of government or public sector undertaking buses and airline ticketing counters at airports for purchase of tickets till November 11.

 

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