Though Andhra Pradesh Chief Minister Chandrababu Naidu has been projected as an efficient face of `economic management’ and projected the state in the first place at national level as a destination for `easy business doing’, the state financial conditions seems to be alarming. In all economic indicators, the state performance said to be regressive.
The government is failing in getting revenue as per plan and non-plan expenditures dominating its spending. The demonetisation drive has already having divesting impact on its financial resources making the budget estimations a farce.
Finance Minister Yanamala Ramakrishnudu presented his budget for 2016-17, projecting a revenue deficit of Rs 4,868 crore. However, already it has Rs 14,134 crore and fears to touch Rs 16,000 crore, on par with first year after bifurcating of the state. This reflect failure of the government in making efficient financial management.
The government is estimating that the Gross State Domestic Production (GSDP) of the state would be Rs 6,83,233 crore as per present prices. As per budgetary estimations, the revenue deficit would be 0.7 per cent in GSDP. However, already it has reached 2 per cent at an alarming level.
The major reason for financial mess is said to be steep decline in revenues from taxes. As against projection of Rs 40,707 crore, till now it got only Rs 33,012 crore. Though tax collections are more than previous year, the government failing to meet its own targets. As against target of Rs 29,127 crore commercial taxes collection, it has till now achieved only 83 per cent, Rs 24,176 crore. Likewise the achievements of targets only 70.43 per cent in registrations and 76 per cent in excise,.
The government facing major problem in getting revenues from the Centre as per expectations. In the budget it was estimated to get Rs 24,637 crore as share in central taxes and Rs 26,849 crore as grants. But it could get only Rs 19,169 crore as share in central taxes and Rs 13,374 crore as grants. Under various accounts, the state government expected Rs 1,04,768 crore from the centre, but could get only Rs 80,598 crore, of which Rs 13,186 crore as loan.
