Andhra Pradesh in ‘Deficit’ Quagmire

Cash-Strapped Andhra Pradesh is in a severe financial crunch as the state is constantly moving into the quagmire of Deficit. While presenting the budget, it was estimated that the deficit for the financial year will be 4868 Crore but then it stood at a staggering 6641 Crore in the first Six months itself.

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The concept of the interim secretariat is not in the budget. About 500 Crore is the expense for the interim secretariat construction. Some 4300 Crore went towards DWACRA Loan Waiver and another 11500 Crore for Farmers Loan Waiver. The state government is pushing the Central government for the increase in the FRBM limit by 0.5% to seek more loans.

Some of the departments have not performed up to the expectations as a result, the deficit has peaked. The deficit which stood at 13673 Crore in the first year is likely to be 20497 Crore in 2016-17. Given that the Central government had already confirmed that it will only help to the minimum in this aspect, tough times are ahead for the state government.