Telangana heading towards severe Financial Crisis!

From being one of the wealthiest states in the country as claimed by its Chief Minister, Telangana now finds itself in deep financial crisis in which the state may even find it difficult to give salaries to its employees next month. Telangana’s finances received a severe jolt after RBI had debited 1279 Crore from Telangana account towards arrears of AP Beverages to the Income Tax department.

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Telangana’s revenue deficit in the first three months of 2015-16 crossed 2500 Crores. The government had diverted 500 Crore of NREGA funds and 300 Crore belonging to Land Regularization to meets its daily expenses. RBI’s debit had made things more worse now.

On the other side, the state government had to pay 2200 Crore to banks as the second installment of the crop loan waiver scheme. The kharif season is in full swing and farmers are awaiting bank loans, if government did not disburse funds in the next few days.