Andhra Pradesh government today presented a Rs 1,35,688.99-crore budget for 2016-17, up 20 per cent over the last fiscal, with an estimated fiscal deficit of Rs 20,497.15 crore, while counting on the Centre to "lend a helping hand" to drive the state towards its 'Vision-2029' goals.
It projected a revenue deficit of Rs 4,868.26 crore and blamed "irrational bifurcation" of the state in 2014 for the mismatch in the expected revenue and expenditure.
"I believe that without generous financial assistance from the Central government, it would be difficult, if not impossible, to implement the ambitious State Development Plan," Finance Minister Yanamala Ramakrishnudu remarked, presenting the budget in the Assembly today.
The budget for 2016-17 marked an increase of 20 per cent over 2015-16, he said, observing he was presenting the document in an "environment of global gloom, national optimism and local exuberance".
The outlay for financing the State Development Plan was set to increase by 42.78 per cent, from Rs 34,412.48 crore to Rs 49,134.44 crore, while the non-plan expenditure would grow by 10 per cent, from Rs 78,636.51 crore to Rs 86,554.55 crore in 2016-17, he added.
"We continue to carry a revenue deficit of Rs 13,897 crore inherited from 2014-15 as a consequence of the irrational bifurcation of the state.
"The unscientific bifurcation also resulted in the residuary state receiving 46 per cent of the revenues of the combined state while having 58.32 per cent of its population. This resulted in a revenue deficit of Rs 16,200 crore in the first ten months of the new state's existence."
"Thus far, the Government of India released only Rs 2,303 crore to bridge the resource gap, leaving the state with a huge revenue deficit overhang of Rs 13,897 crore.
"Tax incentives for industrial development of the state, reimbursement of expenditure incurred on Polavaram irrigation project, grants for construction of the capital city and conferring special category status -- all of which are integral components of the AP Reorganisation Act 2014 and the assurances given in Parliament -- have remained unfulfilled.
"This reality has created tremendous strain on the state's fiscal situation.
"The legacy of huge revenue deficit, an overhang from 2014-15, will continue to haunt us in 2016-17. We expect the Central Government to step-up its support to the State Development Plan in the form of increased assistance and special grants, apart from Rs 3,000 crore to partially offset the revenue deficit of 2014-15," the finance minister said.
"Above all, we count on the Central Government to lend a helping hand to drive this state towards the goals of Vision 2029," he later said at a press meet.
The plan envisages Andhra Pradesh achieving the status of a developed state by 2029.
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The finance minister, however, said the state's own revenues were expected to grow by 16 per cent, from Rs 49,764 crore in 2015-16 to Rs 57,813 crore in 2016-17.
He hoped the Centre would release Rs 935 crore as compensation for Central Sales Tax that was due to the state and also provide Rs 3,500 crore for the construction of Polavaram irrigation project.
He sought the Centre's support for construction of the state's new capital Amaravati with a grant of Rs 1,000 crore.
"We earnestly hope that the Goods and Services Tax (GST) legislation will be passed by Parliament and will become operational in 2016-17. This will provide a boost to our tax pool.
"Overall, I believe that without generous financial assistance from the Central government, it would be difficult, if not impossible, to implement the ambitious State Development Plan," he remarked.
Addressing a press conference later, he said the state was talking to the Centre for release of more funds.
"They may have not allocated adequate funds in the (Union) Budget but we are hopeful they will provide more money for Polavaram and also the new capital.
Chief Minister N Chandrababu Naidu was taking up the issue with Union Finance Minister Arun Jaitley, he added.
Ramakrishnudu also expressed confidence that the state would overcome difficulties and find innovative paths to finance development.
In addition to the resources allocated in the budget, the government proposed to mobilise resources required for development through public-private partnerships and also through the public sector enterprises.
