Andhra Pradesh Budget: Government pegs deficit at Rs 4,868 cr revenue, expenditure up

Andhra Pradesh Budget: Government pegs deficit at Rs 4,868 cr revenue, expenditure up

Hyderabad: Andhra Pradesh government today presented a budget for Rs 1,35,689 crore for 2016-17, with an estimated Rs 20,497 crore fiscal deficit and revenue deficit of Rs 4,868 crore.

The 2016-17 budget marks an increase of 20 percent over the previous budget, Finance Minister Yanamala Ramakrishnudu said when presenting the annual financial statement of the Legislature AP.

The outlay to finance the development plan status is set to rise 42.8 percent to Rs 49,134.4 crore, while spending non- plan will grow by 10 percent to Rs 86,554.6 crore in 2016-17 said Minister of Finance.

Finance Minister Yanamala Ramakrishnudu

"We continue to lead to a revenue shortfall of Rs 13,897 million inherited from 2014-15 as a result of irrational state bifurcation rupees," he said.

The division also resulted in the residual state receiving 46 percent of the revenue of the combined entity with 58.3 percent of its population.

This resulted in a revenue shortfall of Rs 16,200 crore in the first 10 months of existence of the new state.

"So far, the central government released only Rs 2,303 crore to close the resource gap, leaving the state with a large overhang revenue deficit of Rs 13,897 crore," Ramakrishnudu said.

"The legacy of huge revenue shortfall, an overhang from 2014-15 will continue to haunt us in 2016-17. We hope that the central government to intensify its support for the state development plan in the form of increased central assistance and special grants. .. to partially offset the revenue shortfall of 2014-15, "said Finance minister.

However, he said expects the state's own revenue growing by 16 % to Rs 57,813 crore in 2016-17 from Rs 49,764 crore in 2015-16.

Ramakrishnudu expects the Centre to release Rs 935 crore as compensation to the sales tax due to state and also provide Rs 3,500 crore for the construction of the irrigation project Polavaram.

He sought the support of the Center for the construction of the new capital of Amaravati state with a grant of Rs 1,000 crore.

"We sincerely hope that the goods and services tax legislation will be approved by Parliament and will be operational in 2016-17," the minister added.