Born rich, Telangana till recently is a surplus state. Things have gone haywire. The state which recorded highest growth rate of 17 percent to 21 percent is now faltering.
As per the data available, by the end of 2019-2010, the state has registered a growth rate of a mere 2.76 percent.
This is for the first time, the Telangana state witnessed a steep fall. The state for the first time has become eligible for GST compensation like many other states with a growth rate lesser than 14 percent.
According to sources, the fall has begun with demonetization, whose after effect is still being felt. And now the slowdown has aggravated the situation. Officials attribute this to factors outside Telangana.
The state is banking on real estate transactions to generate revenue to bridge the gap in the budget. But, suddenly Vizag has emerged a rival to Hyderabad with Jagan announcement to shift the executive capital from Amaravati to Vizag.
Now, with the fall in the revenues, the implementation of many flagship welfare schemes, irrigation projects, etc are expected to face the severe fund crunch.
Against this backdrop, the state has also started feeling the pain of debt burden