HYDERABAD: The financial situation of the State is not so bright even though it showed some green shoots of recovery post COVID-19 induced lockdown. In the first six months of current financial year, the State revenue collection was just 26.51 per cent and debts were 78.30 per cent against the Budget estimates.
According to the figures released by the Comptroller and Auditor General (CAG) up to September, the State’s financial situation is not so encouraging. As against the Rs 1,43,151.94 crore estimated revenue receipts for 2020-21, the State has received only Rs 37,949.84 crore till September.
With no revenues, the State mostly depended on borrowings in the first half of the year. The revenue for the first six months is 26.51 per cent of the estimates. And it is very difficult to get the remaining 73.49 per cent estimated revenues in the next six months time.
As against the budget estimate of Rs 33,241 crore, the State got Rs 26,0202.43 crore under capital receipts up to September, a 78.28 per cent of the estimates in the first six months itself. Of the capital receipts, the borrowings and other liabilities (net) were estimated as Rs 33,191.26 crore for 2020-21. However, up to September, the borrowings and other liabilities stood at Rs 25,989.43 crore, a 78.30 of the estimated amount.
The State has ambitious plans of spending Rs 22,061.18 crore on capital expenditure this year. But, the capital expenditure up to September is just Rs 6,403.14 crore, a 29.02 per cent. If the revenue collections continue to be low in the coming months, it may have an impact on the capital works.
The revenue and fiscal deficits too are high this year. It was estimated in the Budget that the revenue surplus would be Rs 4,482.12 crore this year. However, the State pushed into revenue deficit.
The revenue deficit for the first six months is Rs 16,433.12 crore, a minus 366.64 per cent. With these alarming trend in State finances, Chief Minister K Chandrasekhar Rao recently directed the officials to take up a mid-term review of the Budget. The Finance Department is checking everything and the budget of some of the departments may be reduced.
Borrowings
As against the Rs 1,43,151.94 crore estimated revenue receipts for 2020-21, TS has received only Rs 37,949.84 crore till September. The State mostly depended on borrowings in first six months