Telugu states blame recession for economic slowdown

The news was out and it was not good. The officers have told Chief Minister that the revenue had slipped from 14 % to 5% during the past three months since the new administration took over the reins from Nara Chandrababu Naidu. Even the slowdown in the state of economic affairs in the state has been attributed to the overall economic meltdown in the country; the phenomenon also had its impact on sibling state Telangana.

Officials, from money-making revenue, excise, commercial taxes, stamps registration and transport departments told the Chief Minister YS Jaganmohan Reddy at a review meeting on state’s financial position that the slowdown was due to ailing construction and automobile sector. The state’s sand policy which has not been declared has also had its impact on the construction industry in the state. The unilateral ban on sale and movement of sand by the Jagan’s administration has affected the real estate sector in the state.

It is said that Tax revenue did not show an expected increase in the last four months and a fall in iron, steel and cement rates. The automobile market has its effect on GST in AP, like on all other states. However, the state hopes to benefit from the GST share of Rs 597 crore from the Centre. It was also said that a 14 per cent increase envisaged in commercial tax revenue in the months to come will help the state to recover from the slump.

Partial Liquor ban

The state’s ambitious phased liquor ban also had its share in the slow down. The liquor sales had shown a significant drop by 12 lakh cases till July. While all belt-shops attached to licensed liquor stores were shut down and the number of liquor stores the state to be cut down from the current 4,380 to 3,500 by September, the earnings from the Abkari and Excise department can’t be increased. But the government is keen on budgetary support for anti-liquor activities to Rs 500 crore and the decision to run liquor stores under its control will create a job potential of 16,000,is said.

Meanwhile in Telangana Chief Minister K Chandrasekhar Rao has advised the officials to prepare budget keeping the realistic revenues in mind. He directed all department heads to cut down expenses while assisting agriculture and welfare sectors.