AP breathes easy as Centre releases Rs 2,074 cr in tax revenue

The cash-strapped Chandrababu Naidu government got a big breather today with the Centre releasing Rs 2,074 crore to Andhra Pradesh as a part share of its Central taxes.
State's resident commissioner in New Delhi Praveen Prakash has been vigorously pursuing the issue with the Union finance ministry in view of the grave financial condition of the state for some time now.
Giving a breakup of the money received, an official statement from the state government said of the total amount released, Rs 613 crore is the state's share of corporate tax, Rs 536 crore under income tax, Rs 293 crore under the Customs duty. Another Rs 305 crore come under the state's share of Excise duty and Rs 327 crore as service tax's share.

"This much-required assistance from the Centre comes at a time when we were about to go for fresh borrowings. Already we have borrowed Rs 16,000 crore of the Rs 23,794 crore we are entitled to under the Fiscal Responsibility and Budgetary Management Act during the current fiscal. This Central grant will help us tide over the current financial crisis," a senior official from state finance department said.
Finance minister Yanamala Ramakrishnudu recently rang alarm bells saying the state's financial position was "critical".
The state government has promised to release Rs 3,000 crore as the third instalment towards the farmers' debt redemption scheme and another Rs 2,000 crore for women's self-help groups though the financial condition remained critical.

Various states are in financial troubles as GST glitches continue to dog tax collections.
Also, as per the GST Act, the Centre is constitutionally bound to compensate the states for presumed revenue loss by way of lower or delayed tax collection.