Testing times for AP revenues!

The truncated state of Andhra Pradesh has started feeling the heat of the state bifurcation. The pressure of inheriting a deficit budget is being felt by the state as months pass by. It is said that the state slowly is heading for difficult times with a yawning gap between its revenue generation and expenditure commitments.

The Center during the state bifurcation has promised to bear the first year budget deficit for the state. As a result, Andhra Pradesh has estimated a helping hand of 15000 Crore from the Center in its first budget after the state budget which did not arrive till date. The Chief Minister is trying his level best to exert pressure on the central government to release the funds as soon as possible.

The expenditure so far in the State is Rs.56,700 crore as against Rs.50,206 crore in the combined State last year. Sources said last year the expenditure was significantly low due to agitations and later elections. Also AP is burdened by the salary bill for three months from April to June in the combined State was paid by the Andhra Pradesh. We will have to see if the Center will come to AP’s rescue now!