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The Hindu
The Hindu
National
G.V.R. Subba Rao

Revenue deficit of Andhra Pradesh crosses budget estimates in first quarter itself

The statement on the quarterly review of the trends in receipts and expenditure in relation to the budget at the end of the first quarter of the 2023-24 financial year presents a grim picture of the State government’s finances.

Finance Minister Buggana Rajendranath Reddy tabled the report in the Assembly on Monday.

According to the report, the revenue deficit (excess of expenses over receipts on revenue account) exceeded the budget estimates (BE) for the financial year 2023-24 in the first quarter itself. The estimates were ₹22,316.70 crore. The revenue deficit, however, touched ₹26,606.47 crore between April and June, 2023. The revenue expenditure, as per the report, includes salaries, pensions, interest payments, subsidies, maintenance, welfare schemes and other grant-in-aid expenditure. This government spent ₹72,719.17 crore on these heads. It is 31.82 per cent as against the budget estimate of ₹2,28,540.71 crore for the 2023-24 year. The revenue receipts during the same period were ₹46,112.70 core, which consists of tax revenue, non-tax revenue, share of central taxes and central grants. It is 22.36 per cent of ₹2,06,224.01 crore provided in the business estimate for the 2023-24 financial year.

Similarly, the fiscal deficit (difference between total revenue and total expenditure) is ₹39,492.86 crore as against the business estimate of ₹54,587.52 crore for the 2023-24 financial year.

The total public debt stood at ₹22,757.30 crore during the first quarter of the financial year as against the estimate of ₹72,022.09 crore for 2023-24. This means the public debt touched 32% of the estimates during the first quarter itself. The government estimated that the open market borrowings would be ₹63,000 crore for the financial year. The open market borrowings were 36% of the estimates during the first quarter (April-June).

On other hand, the State government achieved 31.82% of its commitments towards schemes such as Navaratnalu in the first quarter itself. However, the report does not show the entire picture of the revenue expenditure including salaries and pensions, etc.

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