After revenue deficit, AP hopes to reverse trend on finances

As against a surplus of Rs 4,444 crore projected in the budget estimates for 2012-13, Andhra Pradesh registered a 'revenue deficit' of Rs 1,072 crore in the first half of the fiscal.

The ongoing power crisis has affected the industrial sector in the state while agriculture has been impacted due to the vagaries of nature.
 Statutory grants to the tune of Rs 1,500 crore from the Centre stopped flowing as the state government failed to conduct elections to panchayat raj institutions and urban local bodies.
 On the other hand, there is rise in unbudgeted expenditure due to sops being announced by Chief Minister N Kiran Kumar Reddy during the course of his Indiramma Baata, a new mass contact programme, as well as other contingencies.
  State Finance Minister Aanam Ramanarayana Reddy, however, says things are being brought under control.
 Not that the revenue deficit will continue through the financial year. The trend may reverse in the second half, he said.
 Our revenue receipts touched Rs 43,000 crore in the first half of the fiscal, which is 40 per cent of the budget estimate of Rs 1.08 lakh crore, the Finance Minister told reporters here today.
 He said a sum of Rs 33,537 crore has been spent under non-plan and Rs 10,598 crore under plan.
 Apart from this, we have released Rs 4,025 crore over and above the budgetary allocation for various schemes, he added.
 While admitting  growth in revenue was not commensurate with expenditure, the Finance Minister ruled out levying any fresh taxes as of now.
 We are confident of meeting the revenue realisation target by plugging various loopholes and collecting existing taxes properly, Aanam said.