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AP finances in dire straits
AP finances in dire straits, Andhra Pradesh is facing an uphill task in living up to its promises made by the Chief Minister N Chandrababu Naidu.
Andhra Pradesh is facing an uphill task in living up to its promises made by the Chief Minister N Chandrababu Naidu. A paper prepared by Assocham, India’s oldest industry body, says: “The Andhra Pradesh State began with a revenue deficit of Rs 15,691 crore for the 2014-15 fiscal whereas Telangana acquires a revenue surplus of Rs 3,555 crore.”
“The single most immediate concern for both the States is mobilising resources to fulfil populist promises included in the manifesto. The waiver of crop loans, loans availed by self-help groups, particularly in residuary AP has become a daunting task given its precarious revenue deficit,” according to the paper compiled by D S Rawat, Secretary General of Assocham.
The paper estimates that the internal debt burden of united Andhra Pradesh was Rs 1,45,660 crore (after the Centre waived Rs 18,000 crore debt) to be apportioned between the two States on the basis of population ratio, new Andhra Pradesh will be left with a loan burden of Rs 85,000 crore and Telangana, with about Rs. 61,000 crore.
State Finance Minister Y Ramakrishnudu, striking a disappointing note at the Union government’s casual attitude to the woes of the Andhra Pradesh State , appealed to the Centre to understand the pathetic financial situation.
The very fact that he urged the Center with folded hands to come to the rescue of the State is a clear indicator of the tough situation the State is facing. Though the State government had set a target of Rs 33,898 revenue till January, it could not mop up more than Rs 28,824 crore. Even the revenue gap which was Rs 16,000 crore when the State was bifurcated has now gone up by Rs 5,000 crore. Another major problem before the government is to find money to transfer Rs 3,600 crore to the Farmers Empowerment Corporation towards second phase of loan waiver for farmers.
With the TS government having announced 43% fitment, the government is now under pressure to make similar announcement. Under the circumstances, the Centre has asked the State to seek funds department-wise as that would help bail out the State.
