Andhra Pradesh Finance Department got a breather with the release of over Rs.4,000 crore by the Centre on Tuesday, the last day of financial year. The timely release under various heads helped it to avert the ignominy of defaulting on its overdraft borrowings.
Sources said here on Wednesday that the State was in safe zone for now so far as its OD commitments of about Rs.4,500 crore were concerned. Apart from the funds sanctioned on Tuesday, State would get its share of Central taxes in the first week ánd meanwhile would be able meet its salary expenditure for April.
An instalment of revenue deficit grant of Rs.6,600 crore sanctioned by the 14{+t}{+h}Finance Commission may also be released to ease its financial position, sources added.
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But from May onwards, it would again be a tight rope for the State balancing its borrowings and revenue receipts. The salary Bill would also go up from May on account of 43 per cent fitment sanctioned to employees and pensioners under 10{+t}{+h}Pay Revision Commission.
So desperate was the Finance Department that it deputed its officer to RBI office at Nagpur to track the ‘advice’ issued to Reserve Bank of India on Tuesday night. The State however got modest assistance compared to the funds it requested as part of promises made under the State Reorganisation Act. While it urged Centre to compensate Rs.15,000 crore revenue deficit, it was granted Rs.2,300 crore. Of this Rs.500 crore was granted earlier along with Rs.350 crore released for special development package for seven backward districts.
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Overall the Centre’s largesse to help the beleaguered State following bifurcation did not exceed Rs.4,150 crore while State expected at least Rs.10,000 crore as indicated by Union Minister Sujana Choudhary .
The State Cabinet however adopted a positive attitude and appreciated the funds that came their way on the last day of financial year and adopted a resolution in its meeting on Wednesday thanking the Centre.