Andhra Pradesh

AP’s share in taxes dip by Rs. 2,300 cr.

Notwithstanding the Union Budget has fallen short of the State’s expectations, AP will receive Rs. 2,300 crore less than the projected devolution in the recently released 14{+t}{+h}Finance Commission report.

The Finance Commission recommendations showed that AP’s projected share would be Rs. 1,69,969 crore over next five years.

It was projected that the State would get Rs. 24,938 crore as its share of taxes for 2015-16, Rs. 28,776 crore for 2016-17, Rs. 33,248 crore for 2017-18, Rs. 38,462 crore for 2018-19 and Rs. 44,546 crore for 2019-20.

But, Annexure 10 of the Finance Minister’s budget speech showing Statewise distribution of net proceeds of Union taxes for budget estimates 2015-16, projected a tax share of Rs. 22,637 crore as against Rs. 24,938 crore estimated by the Finance Commission.

De-linked

The Budget also de-linked schemes like Backward Regions Grant Funds, modernisation of police forces, tourist infrastructure, scheme for setting up of 6,000 model schools, modernisation of police forces, national e-Governance Plan, from Central support. It will impact the expected fund flow to AP, making it difficult for the State, which is already reeling under a revenue deficit of Rs. 16,000 crore.

However, the State will get a grant of Rs. 6,609 crore for 2015-16 to offset its revenue deficit as recommended by the Finance Commission.


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Printable version | Jan 24, 2022 8:42:28 PM | https://www.thehindu.com/news/national/andhra-pradesh/aps-share-in-taxes-dip-by-rs-2300-cr/article6948121.ece

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