Andhra Pradesh Finance Minister Buggana Rajendranath Reddy has proposed an Interim Budget of ₹2,86,389.27 crore for the fiscal 2024-25.
Presenting the Budget in the Assembly on February 7, Mr. Rajendranath Reddy said the revenue expenditure was estimated at ₹2,30,110.41 crore and capital expenditure ₹30,530.18 crore. The estimated revenue deficit is around ₹24,758.22 crore and the fiscal deficit is estimated at around ₹55,817.50 crore. The fiscal deficit would be around 3.51% of the Gross State Domestic Product (GSDP), while the revenue deficit would be 1.56% of the GSDP.
The revised estimate for revenue expenditure for Financial Year (FY) 2023-24 was ₹2,28,237.77 crore. Similarly, the capital expenditure was ₹27,308.12 crore. The revenue deficit for 2023-24 was ₹31,534.94 crore, whereas the fiscal deficit for the same period is around ₹60,153.59 crore. “The revenue deficit and fiscal deficit amounts to 2.19% and 4.18% of the GSDP respectively,” he said.
“The Minister said that the revenue deficit was ₹44,487.49 crore, and fiscal deficit was ₹52,508.34 crore during the FY 2022-23. The revenue deficit and fiscal deficit were 3.30% and 3.98% of the GSDP respectively, for FY 2022-23,” he said, referring to finance accounts finalised by the Accountant General of Andhra Pradesh.
Holding the previous government responsible for strained Centre State Relations and Resolution of State Bifurcation Issues, Mr. Rajendranath Reddy said: “The State suffered a grievous wound in 2014. However, the previous government did not take any substantive measures to amicably resolve the issues or to get rightful entitlements of the State when time was appropriate.”
The present Government inherited a legacy of unresolved issues and antagonistic ties with our neighbour. Nevertheless, over the last five years, the State Government relentlessly fought for Andhra Pradesh rights, and succeeded in releasing ₹10,460 crore Revenue Deficit Grant of 2014-15 by the Government of India. Andhra Pradesh obtained directions from the Government of India to the State of Telangana to pay the power dues of ₹6,756 crore to Andhra Pradesh. A.P. Government resolved the pending issues between Andhra Pradesh and Telangana pertaining to A.P. Civil Supplies Corporation. “The A.P. Government obtained pending instalments of Backward district grants of ₹1,050 crore,” he said.
Mr. Rajendranath Reddy said A.P. Government convinced the 15th Finance Commission to award a higher revenue deficit grant of ₹30,497 crore to A.P.; also convinced the Union government to sanction the revised project cost for Polavaram Project. “Due to A.P. Government efforts and cooperation of the Union government, all other issues too are at very advanced stages of resolution,” he added.
Vote on account
The Government presented a vote on account Budget of ₹8,8215 crore for 2024-25. The amount would be utilised until the new government presents a full Budget after the Assembly elections.
