AP records 14% growth in Q2 revenues over last year. But expenses overshoot bigtime!!

‘According to official sources, the revenue of Andhra Pradesh in the second quarter increased to Rs 12,881 cr from Rs 11,313 crore of the corresponding period last year, thereby registering an approximate growth of 14%” -Says the Times of India.

But, the officials informed CM Chandrababu Naidu that in the second quarter of the year 2014-15, revenue expenditure recorded an increase of 48 per cent (Rs 4000 cr) over revenue expenditure of the corresponding figure last year. Similarly , non-plan expenditure grew by 27 per cent. Even though departments such as excise (85 per cent), commercial taxes (93 per cent) stamps and registration (85 per cent), revenue (115.6 per cent) and transport (78 per cent) posted impressive growth, the total revenue growth of 17.6 per cent paled into insignificance before the growing expenditure.

In view of the crisis, officials have been instructed not to release the budget for departments unless it was es sential. They also have been cautioned to ensure that the deficit should not exceed what was envisaged in the budget under any circumstances.

With a view to mop up re sources, Naidu has asked the revenue officials to explore the feasibility of setting up economic intelligence units on the lines of the once constituted by Maharashtra long ago. He also asked the officials to study the excise policy of Tamil Nadu, where the government sells the liquor. The CM also asked the excise offi cials to maintain the current levels of growth. However, during the review of the transport department, Naidu expressed dissatisfaction over its `unsatisfactory record’.

In the meantime, finance minister Yanamala Ramakrishnudu instructed officials to impose a 20 per cent cut in the non-plan expenditure across the board excluding expenditures like salaries, stipend and scholarships. The FM held a separate review meeting on the alarmingly growing fiscal deficit in the state.

 

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