The Telangana state government, which has cried foul after Prime Minister Narendra Modi initiated his demonetisation move stating that it would badly impacts its finances and also deputed senior ministers to New Delhi seeking special assistance from the centre to cover up revenue losses, is now claiming it has little impact on them.

Moreover, Finance Minister Etela Rajendra stating that the state is witnessing substantial increase its revenues. According to his reply given today in the state assembly, responding to the question raised by MIM floor leader Akbaruddin Owaisi, the State had witnessed an increase in revenues by almost 13%.

Compared to previous year, there was an increase by 22% in Sales Tax, 35% in Taxes on Vehicles while the Stamps and Registration Department recorded an increase by 56% in its revenues. If the trend continues, the minister is hopeful that the government would ensure 100% spending of amounts allocated in the budget for financial year 2016-17.

According to him, from 1st April to 30th September this year, the State Government had spent Rs. 51,615 crores on various projects including welfare schemes. He said that the remaining budget will also be spent by March next year.

He said that the governments usually spent a major portion of allocated budget in the month of February. He said there was no negative impact of imposition of GST in the State and it was expected to fetch positive results as Telangana was a consumption State and not a manufacturing State like Gujarat, Maharashtra or Tamil Nadu.

The Finance Minister denied of Telangana State facing a huge revenue deficit due to hike in salaries for employees, crop loan waiver, fee reimbursement, social security pensions and increased rice quota for BPL families. However, he said a little impact could be felt due to Dearness Allowance for employees.