Hyderabad: The Telangana Budget is set to be downsized by at least 20 per cent from the last year, as the financial condition of the state has been badly affected by the Covid-19 pandemic and the subsequent lockdown.
The government has suffered revenue losses of over Rs 50,000 crore due to the lockdown and slowing down in the economy.
Finance minister T. Harish Rao had presented the 2020-21 Budget with an outlay of Rs 1.8 lakh crore. The Budget for 2021-22 is expected be less than Rs 1.5 lakh crore.
It may be recalled that Chief Minister K. Chandrasekhar Rao had pruned Budget size by 20 per cent in 2019-20 citing the economic slowdown and drastic cuts in Central government funds and grants.
The recent Union Budget also came as a big disappointment for the TS government with cuts in Central tax devolution and imposition of agriculture cess on fuel which is estimated to result in a loss of over Rs 5,000 crore in 2021-22.
The CM has been holding meetings with…