Naidu boasts of 10.5% GSDP growth;revenue,fiscal deficit widen

Revenue and fiscal deficits of Andhra Pradesh have been widening, shows an internal note prepared by the state government, even as Chief Minister N Chandrababu Naidu said the state saw a healthy 10.5 per cent growth (in GSDP).
An internal note on the state of finances, circulated at a two-day conference of district Collectors here today, exposed the gravity of AP's financial situation.
According to the note, the revenue deficit shot up to Rs 7,919 crore (till February 16) as against Rs 7,299 crore projected in the 2015-16 budget estimates. Similarly, the fiscal deficit stood at Rs 19,092 crore (Rs 17,584 crore estimated in budget).

Also, revenue receipts were not up to the expected levels with receipts so far being only Rs 83,826 crore as against the estimated Rs 1,12,852 crore. Both tax and non-tax revenues are showing a severe shortfall but expenditure, particularly capital expenditure, has been shooting up, the note said.
Total plan and non-plan expenditure touched Rs 96,692 crore till February 16 while capital expenditure stood at Rs 11,036 crore as against the budgetary provision of Rs 9,819 crore.
There is a shortfall in revenue receipts from sales tax, state excise, stamps and registration while non-tax receipts from mines and minerals, forests, rural development cess and other sources too is way short of the targets.

"Shortfall in tax revenue is expected to be Rs 4,395 crore by the end of the fiscal while non-tax revenue will be Rs 731 crore lower," the internal note said.
Earlier in the day, addressing the conference, Naidu said Andhra Pradesh achieved a growth rate of 10.5 per cent in the Gross State Domestic Product (GSDP) in the current fiscal year despite "severe constraints".
"Andhra Pradesh started off with a revenue deficit of about Rs 16,000 crore following the bifurcation of the state in 2014. This posed an enormous challenge for us but still we could achieve a growth rate of 8.39 per cent in 2014-15 and increase it to 10.5 per cent in 2015-16. For the next year, our target is a 15 per cent growth in the GSDP," he said at the meet.