States Confused on Budget Works

All the state governments which have started preparation for their upcoming Budgets are left in a total confusion following the Notes Ban in the country. The finances of the states were worst hit already with the Tax Collections not even reaching half the target this month. Many states are not even in a position to pay the salaries for the employees.

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Things are even worse for the states with deficit budgets. The state governments are confused about their plans for the next budgets as they are not sure about how long the impact of this Notes Ban continues. Already the states have stopped all payments and impose treasury controls so that whatever money received by the government would be used for the salary and pension bills.

In Telangana, the officials were instructed to go on with their routine budget preparation as the effect is expected to go on only for 2-3 Months. But financials experts say they are under-estimating the effects and the Notes Ban will impact the revenues of the states at least for a year as the business activity will slow down significantly.