VIJAYAWADA: In the first half of the 2020-21 financial year, Andhra Pradesh government's borrowings exceeded Rs 55,169 crore-mark, which is more than the actual target for the entire fiscal.
The borrowings for the first six months exceeded the revenues and the revenue deficit touched Rs 45,472 crore, as disclosed in the State Finance Accounts for September released by the Comptroller and Auditor General (CAG).
The State government has set itself a target of Rs 48,295.59 crore under borrowings and other liabilities, part of the capital receipts (Rs 48,895.58 crore) for the financial year 2020-21.
However, in the first half of the current fiscal itself, the State’s borrowings from different sources touched Rs 55,189.63 crore, 114.23 per cent of the budget estimates. In the corresponding period of the previous fiscal (2019-20), it was only 46.68 per cent of the budget estimates.
When the month-wise borrowings and other liabilities were taken into consideration, maximum was in April (Rs 16,903.47 crore), followed by May (Rs 12,515.48 crore), September (Rs 8,038.94 crore) and August (Rs 7,84.60 crore).
At the same time, the total revenue receipts in the last six months was only Rs 44,915.52 crore, that is 27.73 per cent of the budget estimates of Rs 1,61,958.50 crore. For the corresponding period of the previous fiscal, it was 29.42 per cent of the budget estimates.
Tax revenue, which included revenue from goods and service tax, stamps and registration fees, land revenue, sales tax, state excise duties, state’s share of union taxes, other taxes and duties, was Rs 29,936.30 crore, that is 29.09 per cent of the budget estimates of Rs 1,02,917.01 crore.
For the corresponding period of the previous fiscal, it was 38 per cent of the budget estimates. Sources in the Finance department attribute the reason for the fall in the tax revenues and increase in borrowings to Covid-19 crisis, which has adversely impacted the State economy. Though there was an increase in some taxes and duties, it will not immediately reflect in the accounts.
With more welfare schemes launched this year, the revenue expenditure showed a sharp increase from Rs 23,397.69 crore during April-September in 2019-20 to Rs 54,206.63 crore during the same period in the current year.
The capital expenditure too showed a significant jump to Rs 9,331.90 crore in the first six months of this year, compared to Rs 3,338.59 crore in the corresponding period last year.
Central grant goes up
The State, however, received Rs 13,678.79 crore in grants from the Centre, a substantial increase from Rs 9,230.20 crore during the corresponding period last year.