AP has no chance to increase its income

While Telangana government is working on improving its tax and non-tax revenues, Andhra Pradesh government is depending on the Central government funds and borrowing to fund its day to day activities. AP’s non-tax revenues for 2015-16 are less than that of the previous year which is contrary to the normal practice of estimating more revenues.

Telangana government has estimated Rs 20,288 crore more than last year from tax and non-tax revenue in the present year. However Andhra Pradesh just kept it to Rs 2,368 crore more than last year. AP will have to depend on the center to bridge the deficit in the budget.

“With no capital and the state government in no mood to increase the taxes, one can not increase the revenues from taxes or non-taxes. Also AP is an agriculture based state where most people come under no tax slab. The state can increase its income only when the industries line to the state” says a economic expert.