Surplus Telangana Slips into Overdraft

The Revenue Surplus Telangana seems to have been hit very badly due to the demonetization. The state revenues for November had fallen by 60% and the state has no option to go for an overdraft for the first time. The state government even opted to avail ways and means advances from RBI to mobilize funds.

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But then the funds are still not sufficient to meet the financial commitments and needs. So the government had sought for Overdraft facility from RBI so that it can pay the salaries of the employees and meet the other day to day expenses. The situation is likely to go on for the next couple of months at least.

The government is estimating that it will be losing 3600 Crore income due to the demonetization and is demanding that the Center should distribute the cash accrued to it through demonetisation among all states in the ratio of at least 42 percent. Chief Minister K Chandrasekhara Rao will take up the issue in his meeting with the Prime Minister Narendra Modi today.