Revenue deficit for AP in 2014-15 after 8 years

After eight consecutive years of revenue surplus, Andhra Pradesh registered a revenue deficit of ₹24,194 crore during 2014-15.

Due to this, the State could not achieve the fiscal reform targets during the year, according to the Comptroller and Auditor General of India.

In its report on State Finances for the year ended March 2015, the CAG reported the fiscal deficit of ₹31,717 crore at 6.1 per cent was double the ceiling of three per cent prescribed under the Fiscal Responsibility and Budget Management Act.

Total liabilities The report further states that the total liabilities stood at 32 per cent of Gross State Domestic Product as against a ceiling of 27.6 per cent prescribed under the FRBM Act for 2014-15.

The State revenue receipts at ₹90,672 crore registered a shortfall of ₹1406 crore (1.53 per cent) during the year over the projection of ₹ 92,078 crore made in the Budget. Revenue expenditure of ₹1,14,866 crore at 22 per cent of GSDP was more than the projection of ₹ 98,142 crore made in the budget for 2014-15.

Capital expenditure During the current year, the CAG observed that 78.94 per cent of the revenue expenditure was met from revenue receipts and the balance of ₹24,194 crore was financed from borrowed funds.

While capital expenditure of ₹11,405 exceeded the Budget estimates of ₹7,070 crore by 61.32 per cent, its ratio to total expenditure stood at 8.95 per cent.

And capital works and projects in irrigation and road sectors continued to languish and delays in their completion led to cost escalation of these projects. The investment blocked in such incomplete projects and works as of March 2015 was ₹32,646 crore.

The CAG report stated that the return on investment in companies /statutory corporations continued to be poor. The level of recovery of loans was low. It further stated that the Finance Department did not maintain any centralised database of loans with entity-wise information.

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