Kerala Finance Minister Thomas Isaac has said the state's tax revenue could fall by half in the wake of the demonetisation of high-value currency.
He feared that the state’s overall revenue for the financial year could witness erosion to the extent of 25 per cent.
SALARY BILLS
But he hoped that salary bills for November could be passed without much trouble and the amounts transferred to the treasury accounts of employees.
But, given the restrictions imposed lately by the Centre, the employees would be able to withdraw only up to Rs 24,000 for the month.
Separately, Isaac noted that there has been a sharp fall in registration fees in the state post-demonetisation. The monthly draw of chits of the Kerala State Financial Enterprises has been hit. The state lotteries department, among the largest revenue earners, too, has faced some reversals.
LOTTERY REVENUE
The decision to suspend lottery draws for a week would lead to an estimated loss of Rs 300 crore in ticket sales, the minister said.
The monthly turnover from lottery ticket sales could fall by half, he added.
Another worry was the impact of demonetisation on the retail trade. The state government had factored in 19 per cent growth in tax revenue this year.
It remains to be seen how this growth would pan out, Isaac added.