Central grants released far below budget estimates, says Buggana

Buggana Rajendranath Reddy

Buggana Rajendranath Reddy  

The State had received a mere ₹9,326.52 crore as grants from the Centre from April to September this year.

The government, in its 2019-20 budget, had estimated that the State would receive ₹61,017.52 crore from the Centre under various heads such as the Central Assistance to State Plan (CASP), Externally Aided Projects (EAP), revenue deficit (for 2014-15), and Finance Commission grants.

Though the government expected that ₹12,099 crore would be released as revenue deficit grant, the Centre did not release any funds during the first two quarters. Also, there were no releases under the EAP grants. The amount received so far under various grants was just 15% of the estimates.

Finance Minister Buggana Rajendrnath Reddy stated these in his statement on ‘Quarterly review of trends in receipt and expenditure in relation to the budget at the end of the second quarter of the financial year 2019-20’, in the Assembly on Tuesday. As per the statement, the tax revenues were ₹28,474 crore, which was 38% of budget estimates. Similarly, the non-tax revenues were ₹1,352 crore, which was 18.39% of the estimates. The fiscal performance during the period April to September 2019-20 reflects the current economic scenario, he said. The fiscal deficit was ₹15,842.60 crore and the revenue deficit was ₹7649.79 crore, he added.

Capital expenditure

The capital expenditure during April-September was ₹3,441.34 crore, which was 10.66% of the budget estimates of ₹32,293.39 crore.

The capital expenditure on a few key departments such as School Education, Medical and Health, Industries, and Panchayat Raj was minimal, he added.

The government had spent a mere ₹9 crore on School Education so far against the estimates of ₹1,638 crore. Similarly, only ₹75 lakh was spent on public health and family welfare while the estimate was ₹1,560 crore.

The government did not spent any amount on transport, roads and buildings and secretariat though the estimates were ₹1,185 crore, the Finance Minister said.

Interest payment

But the interest payment was ₹7,928.62 crore during the period. The budget estimates on this head was ₹17,243 crore, he added.

The government’s market borrowings touched ₹20,100.69 crore during the first six months against an estimate of ₹41,121 crore for the current fiscal. The public debt (total liabilities) stand at ₹20,799 crore against an estimate of ₹46,921 crore, the Minister said.

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Printable version | Aug 13, 2020 3:30:42 AM |

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