Though TDP is the crucial partner of NDA for the survival of Narendra Modi-led government and BJP leadership have been making huge claims of central assistance to the state in the big way, in practice AP is not seen as a priority state for it. Even the Center avoided releasing normal grants for the state.
Moreover, Chief Minister Chandrababu Naidu’s repeated requests the Center is not responding on releasing grants for the development of Amaravati, instead of facilitating loans.
With only 4 percent of the funds received in the first quarter of the current financial year, the impact is weighing on the state exchequer. This is leading to a situation of incurring huge debts. According to the quarterly report announced by the CAG, the state’s financial situation is worrying.
The state’s treasury is in trouble due to a decrease in its own income, non-receipt of funds from the center, and dependence on loans. While Rs. 32,284 crore was to be received from the center in the form of grants for the entire year, only Rs. 1,465 crore was received in the first three months. With an average of Rs. 2,690 crore per month, up to Rs 8,000 crores is to be received in three months.
However, it is noteworthy that only 4.54 percent of the funds have been received. It has decreased to 2.0 percent this year from 6.64 percent in the first quarter of last year. Officials say that this will become a problem for the schemes implemented in the state. If we look at the state’s own income, 20 percent of the funds have been received so far.
As per the budget estimates, Rs. 1.66 lakh crore was estimated, but only Rs. 33,000 crore was received in three months. Of this, land revenue is the least. It is surprising that only Rs 2 crores were received while Rs. 221 crore was expected. With the decrease in the inflow of debt funds to the government, the loans made have also changed drastically.
While the budget estimated a loan of Rs. 79,952 crore, it is worrying that Rs. 37,093 crore was collected as loans in the first three months. With this, the deficit has also reached the same level. While the total income was collected at 20 percent, the expenditure incurred was up to 24 percent.
