Center says No to AP’s Plea for funds!

Andhra Pradesh is heading towards a financial mess after the Center failed to deliver on its assurance to makeup for its revenue deficit of Rs.16,000 crore. The woes compound on the state due to the growing non-plan revenue expenditure, expected tax revenue shortfall of about Rs.15,000 crore by March-end. The state is expected to have a revenue deficit of 20000 Crore by the end of current fiscal.

However the Central government is totally insensitive to AP’s plight. On Thursday, the Centre clarified the State government that it could not give ample funds to the State as the Union government itself is facing `1 lakh crore revenue deficit now.

The state government had asked all its departments to follow strict financial discipline while releasing money for various works, besides imposing a blanket ban on spending of money for lavish conferences and other things.It is also exploring various option to pool in more funds as loans.