Telangana chief minister K Chandrasekhar Rao might be making big announcements like demolition and construction of new Secretariat complex at a cost of Rs 350 crore and increasing the budget of irrigation by another Rs 10,000 crore. But, in reality, his government is said to be in deep financial crisis.
According to reports, the Telangana government has issued instructions to the treasuries to stop payments of all bills except salary bills due to shortage of liquid cash.
The Central goverment used to pay Rs 1000 crore every month from the taxes collected but it has reduced it to Rs 450 crore which is causing inconvenience to the state government, say these reports.
The Telangana government has to release Rs 2,000 crore under various schemes which have been stopped. Sources said the bills of the contractors who undertook the work of construction of road and Mission Bhagiratha have also been stopped.
The agencies responsible for supplying mid-day meals to schools have also been asked to stop the work. Old age pensions are likely to be hit very badly. The finance department is said to have written to the Centre to come to its rescue.
It is reported that Telangana received Rs. 6000 crore from April to September from Taxes, out of which only Rs. 550 crore were release. Govt. of India did not specify the reasons for reducing State’s share. Govt. has to pay Rs. 300 crore to private hospital. Govt. is considering to take necessary steps to enhance income.
