AP budget: Govt pegs revenue deficit at Rs 4,868 cr

AP budget: Govt pegs revenue deficit at Rs 4,868 cr - Sakshi Post

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

The budget for 2016-17 marks an increase of 20 per cent over the previous budget, Finance Minister Yanamala Ramakrishnudu said while presenting the annual financial statement in the AP Legislative Assembly. The outlay for financing the state development plan is set to go up by 42.8 per cent to Rs 49,134.4 crore while the non-plan expenditure will grow by 10 per cent to Rs 86,554.6 crore in 2016-17, the finance minister said.

"We continue to carry a revenue deficit of Rs 13,897 crore inherited from 2014-15 as a consequence of irrational bifurcation of the State,"he said. The division also resulted in the residuary state receiving 46 per cent of the revenues of the combined entity with 58.3 per cent of its population. This resulted in a revenue deficit of Rs 16,200 crore in the first 10 months of the new state's existence. Thus far, the Central Government released only Rs 2,303 crore to bridge the resource gap, leaving the state with a huge revenue deficit overhang of Rs 13,897 crore, Ramakrishnudu said.

The legacy of huge revenue deficit, an overhang from 2014-15, will continue to haunt us in 2016-17. We expect the central government to step up its support to the state development plan in the form of increased Central assistance and special grants... to partially offset the revenue deficit of 2014-15, the minister said. He, however, said the state's own revenues were expected to grow by 16 per cent, to Rs 57,813 crore in 2016-17 from Rs 49,764 crore in 2015-16.

Yanamala hoped that the Centre would release Rs 935 crore as compensation towards central sales tax due to the state and also provide Rs 3,500 crore for construction of the Polavaram irrigation project. He sought the Centre's support for construction of the state's new capital Amaravati with a grant of Rs 1,000 crore. We earnestly hope that the goods and services tax legislation will be passed by Parliament and will become operational in 2016-17, the minister added.

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