Modi’s Black Blow Misfired on the State Governments

500 and 1000 Notes Ban has almost paralyzed the common life across the country. Common People are struggling to buy even the essential goods as the notes with them are no longer Legal Tender while there are serpentine queues at the banks to get the handful of New Notes.

[m9ad]

On the first day, banks have given only the 2000 Notes which people struggled to exchange due to their higher value. Besides the common man, even the state governments are also hit by this move. All the state governments suffered severe losses as the Liquor sales fell, Real Estate Transactions stopped and Tax collections dropped.

The approximate loss of Telangana due to this is estimated at 2000 Crore. Moreover, in the month of November, the Union government even reduced the funds of Tax Devolution to all the states which are adding to the woes of the state governments. Things are going to be really tough at least for the next one month till the conditions normalize.