Revenue deficit: A.P. heading for difficult times

It may be compelled to go for over draft facility. The plan expenditure in the State till date was about Rs.19,000 crore compared to over Rs.17,800 crore in the corresponding period last year in the combined State and non-plan expenditure was about Rs.36,000 crore as against Rs.32,300 crore of last year.

November 27, 2014 11:59 pm | Updated November 16, 2021 06:18 pm IST - HYDERABAD:

Andhra Pradesh is heading for difficult times with a yawning gap between its revenue generation and expenditure commitments.

Though it did better than expected in the revenue front post bifurcation, State was seriously banking on Central allocation to make up for over Rs.15,000 crore revenue deficit as a fall out of bifurcation to meet its plan and non plan expenditure.

The budget estimates for revenue and expenditure for 2014-15 were prepared factoring the promised allocation from the Centre to off-set its revenue deficit.

The State’s own revenue as on date is about Rs.32,000 crore including VAT of Rs.20,800 crore. Last year in the combined State it was about Rs.22,000 crore with VAT revenue of Rs.15,500 crore for the same period.

However, with no sign of any allocation so far and unexpected additional expenditure towards relief and rehabilitation in the wake of Hudhud cyclone, government is worried that going forward, it will be difficult for the State even to meet the salary and pension bill in the last quarter from January to March. It may even be compelled to go for over draft facility seriously impacting its credit worthiness, sources said.

The plan expenditure in the State till date was about Rs.19,000 crore compared to over Rs.17,800 crore in the corresponding period last year in the combined State and non-plan expenditure was about Rs.36,000 crore as against Rs.32,300 crore of last year. This was because the salary bill for three months from April to June in the combined State was paid by the Andhra Pradesh. It also had to bear the burden of pending bills of combined State before the appointed day.

Overall the expenditure so far in the State is Rs.56,700 crore as against Rs.50,206 crore in the combined State last year. Sources said last year the expenditure was significantly low due to agitations and later elections. Interestingly the State also did better in the plan and non-plan expenditure so far compared to last year in the period from June 2 to till now.

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