Hyderabad: Trade revival brings hope
The revival of trade activity during Lockdown 5.0 brings in some cheer to the state government
Hyderabad: The revival of trade activity during Lockdown 5.0 brings in some cheer to the state government. Hopes are running high in government circles that the state economy is set to revive soon. The opening of all business establishments like malls, hotels and restaurants and even slow start of film and TV shootings could ring in some additional moolas, officials feel.
Commercial Taxes, Excise and Prohibition, Stamps and Registrations and Transport departments have been asked to see that there was significant increase in revenues this month by streamlining the revenue generation within the stipulated safety guidelines prescribed by the Union government.
Top officials of the state government told The Hans India that the economic activity is slowly picking up from June 1. Apart from the revival of economic activity, an increase in liquor sales in the last one week raised hopes that the state finances will be back on track in the next two months.
The government earned Rs 400 crore to Rs 500 crore every day during the pre-corona season. But since national lockdown was declared, revenue generation had dropped to all-time low of a mere Rs 5 crore in April and May. Now, the revenues are increasing to an average of Rs 50 crore to Rs 60 per day in June and the government has targeted to generate at least Rs 100 crore to Rs 150 crore every day this month. The opening of all malls and hotels will help achieve the revenue targets set by the government to meet the financial needs of the state, officials said.
After the enforcement of the lockdown, the government has stopped payment of full salaries to the government employees and also put on hold the release of funds to fee reimbursement scheme and other welfare programs, officials said, adding that "unless the economy revives, the government will not be in a position to continue the welfare schemes and pay the salaries of the employees." About 80 per cent of the revenues are being used for the payment of loans and interests to the financial institutions. It requires Rs 2000 crore to pay the debts alone every month. Another Rs 3000 crore is required to pay salaries, pensions and continue other welfare schemes.