When the state was bifurcated in 2014, it was a widely known fact that Telangana revenues were far higher than that of residual Andhar Pradesh due to Hyderabad. The city used to contribute a major chunk of tax collections in the united state and its loss to AP was a major blow.
Not any more. Andhra Pradesh has earned more revenue for the full year 2015-2016 ending 31st March 2016. Andhra Pradesh has now overtaken Telangana by recording 16 per cent increase in revenue. For the first time, AP surpassed Telangana in both tax and non-tax revenue categories including income from commercial taxes, transport, liquor sale, and stamps and registration. Andhra Pradesh received Rs 90,122.58 crore revenue receipts during 2015-16 achieving 100 per cent target. Telangana`s revenue receipts are around Rs 88,550 crore.
Interestingly, all revenue earning departments in AP posted impressive collection figures during 2015-16 even as about 450 mandals are drought-hit with no farm production.
According to official statistics, AP reported collection of Rs 31,120 crore revenue from sales tax, Rs 12,739 crore from excise, Rs 3578 crore from land registrations and stamp duty , Rs 2,128 from transport, Rs 1,390 from mines and minerals. Entertainment tax, Nala tax, professional tax, luxury tax, and sugarcane cess also reported decent growth rate during 2015-16. AP’s own tax revenue touched Rs 44,423 crore. Telangana on the other hand earned about Rs 40,000 crore. The non-tax revenue of Andhra Pradesh also rose to Rs 5,300 crore. Transfers from the Centre reported 120 per cent increa se over the previous financial year. AP received Rs 21,966 crore under different grants from the Centre.
“By introducing finance reforms and following strict budgetary allocations, we spent over Rs 1.17 lakh crore during last financial year. The state reported 16 per cent revenue growth as against national rate of 7.9 per cent. We have also curtailed revenue deficit to Rs 7,143 crore,“ says principal finance secretary PV Ramesh.
The state reported the highest revenue expenditure of Rs 1,17,439 crore including Rs 15,000.64 crore capital expenditure. The expenditure reported 103 per cent growth compared to the previous financial year.
By showcasing 16 per cent revenue growth and reduction in the revenue deficit, the AP government is now planning to approach the Centre seeking increase in the FRBM limit to 4 per cent so that it could raise Rs 5000 crore loan from outside. At present the loan raising limit is fixed at 3 per cent of the gross state domestic product.