However, the state finance minister Y Ramakrishnudu defending the state's action of borrowings, explains, that it had to be done to bridge the gap between revenue and expenditure. Further, Andhra Pradesh frequently depend on the overdraft facility offered by the RBI to take care of immediate expenses.

The overdraft and borrowing are the usual practice before implementing the zero-based budget, the same is still followed now also, said officials.

Hence the government is seriously thinking about reversing to the general budget mode, said the sources. The minister said that it is estimated that the over all revenue deficit may be to the tune of Rs 2,500 crore due to various reasons including fall in devolution of central funds etc. During the year the state received Rs 418 crore from the central pool as against the expected Rs 738 crore, he said. Further, the state has proposed to raise bonds to the tune of Rs 2,500 crore but it could only raise Rs 1,200 crore to fund the power reforms in the state.

It is now in the process of raising Rs 500 crore for the same. Under `Janmabhoomi' the state has earmarked a budget of Rs 85 crore, whereas it has only spent Rs 33 crore, "the remaining will be spent in the next three years", said Mr Ramakrishnudu. The finance minister said, "the zero-based budget which was introduced in the previous year need not be continued for the next year". This year the focus would be on "project evaluation" and giving the budgetary support based on the importance of the programme, he added.