The Times of India reported that in a nearly two-hour long meeting with the governor at the Raj Bhavan, KCR said that the loss of revenue due to the move was anywhere between Rs 1,000 crore and Rs 2,000 crore a month.
Stating that the real estate sector as well as the excise and luxury tax collections would be affected, KCR also reportedly claimed that that the state only received Rs 585 crore this month from the Centre, instead of the mandated Rs 997 crore.
“Reducing tax devolutions in this manner severely hurt the state government’s finances,” TOI quotes the CM as saying.
Meanwhile, the Deccan Chronicle reported that both the Telugu states were facing a financial crisis and not paying pending bills, of around Rs 1,000 crore in Telangana and Rs 1,200 crore in Andhra.
Stating that land transactions and the real estate business have come to a standstill, the report adds that it would take around 10 days for normalcy to return in the state.