The State is reeling under a debt burden of Rs.1.87 lakh crore.
The State government cannot borrow any further debt more than Rs. 17,000 crore to Rs. 18,000 crore during this financial year in view of Fiscal Responsibility and Budget Management Act (FRBM) Act cap. The government will have to shell out more than Rs. 40,000 crore per annum on salaries and pensions in view of 43 per cent fitment announced for the employees, while the total revenue realisation from Commercial Taxes and Excise-- two major revenue generating departments -- would be around Rs. 44,000 crore only and it would hardly meet the salary bills of staff.
Finance and Commercial Taxes Minister Yanamala Ramakrishnudu revealed at the annual meeting of the CT department here on Saturday.
Mr. Ramakrishnudu also said assistance from the Centre would also be not on expected lines for reasons such as 14{+t}{+h}Finance Commission (FC) recommendations on sharing of taxes and grants.
“Our objective is to streamline the State finances and also implement electoral promises,” he said.
The government should strike a balance between revenue expenditure and receipts. As the government cannot go for borrowings the only way out is to improve efficiency and growth rate, he said. Commercial Taxes Commissioner Syamala Rao and additional Commissioner Lakshmi Prasad were present.