Andhra Pradesh

State’s revenue deficit touches a whopping 816.56% by October

Andhra Pradesh’s revenue deficit had in October touched an unprecedented 816.56% of the actuals to the budget estimates for the 2021-22 financial year.

While the State government had estimated that the revenue deficit would be ₹5,000.06 crore during the financial year, it reached ₹40,828.59 crore between April and October.

The revenue deficit was 162.73% in September 2018 (a year before the general elections); 468% in September 2019; 246.68% in September 2020; and 662.80% in September 2021.

According to information, the revenue deficit of Andhra Pradesh is the highest in comparison with the States such as Telangana, Gujarat, Kerala and Karnataka.

In contrast, Odisha has registered a revenue surplus of 282.82% of the actuals to the budget estimates.

The percentage of revenue deficit of Telangana in September 2021 was 119.50.

The revenue deficit percentage for October 2021 for other States was as follows: Gujarat 426.91; Karnataka 31.50; and Kerala 157.98.

As per the Comptroller and Auditor General’s (CAG) accounts for the first half of the financial year 2021-22, Andhra Pradesh’s total revenue was ₹1,04,804.91 crore, which included ₹39,914.18 crore borrowings.

Half of the earnings – ₹50,419.15 crore – had been used up for freebies, payment of interest on old loans, and subsidy bills. The total expenditure, which included salaries and pensions, is rounded off to ₹1,04,723.91 crore.

What it implies

Revenue deficit, according to the officials, implies that the government needs to borrow to finance its expenses that do not increase its assets or reduce its liabilities. It indicates that the revenue receipts are not sufficient to meet the revenue expenditure.

The State had targeted to borrow ₹37,029.79 crore during the financial year. But, it had obtained loans of ₹39,914.18 crore in the first six months itself. The borrowings had touched ₹49,756 crore by October.

The borrowings were on the higher side during the 2020-21 financial year too. While the target was to borrow ₹48,295.59 crore, the actuals stood at ₹55,169 crore by September 2020 itself.

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Printable version | Feb 13, 2022 8:40:02 am |