The fiscal health of the ‘most happening state’, Andhra Pradesh, appears to be grave, if one goes by revenue collections. The state has reported a fall of 11% in revenue collections for the first half against the targets set.
While Rs 13,862 crore was the targeted revenue for the first half of the year, Andhra could generate only Rs 12,459 crore, officials said. However, they (officials) claimed that revenue collections were around 20% higher than the previous year.
Finance minister K Rosaiah said,??Despite all odds, we (government) have not stopped a single payment.?? He added that the state was committed to following the financial responsibility legislation which restricts external borrowings.
How, then, is he managing the finances? When asked, Rosaiah said, ??All the payments are prioritised based on importance and need. Luckily, we have continuous follow of revenue collections.?? However, he refused to elaborate on the issue. According to officials, the team of secretaries is deciding priority of payments.
Interestingly, the government is continuing with its pet projects, like irrigation and mass housing, without bothering about low revenue collections. ??We have not stopped payments. In fact, we have increased expenditure on irrigation projects from Rs 700 crore to Rs 1,000 crore per month,?? officials said. A senior official said that achieving over 90% revenue target itself was a remarkable task. Of course, we have to find new avenues to achieve the targets, he added.
Despite all odds, the mining department showed a good performance in the first half year by generating Rs 681.77 crore revenue against Rs 680.75 crore.
The proceeds from land sales, another major revenue stream, have also fallen short of target. While the government targeted Rs 8,400 crore from land sales in the current year, it could realise only Rs 2,500 crore in the first half.
However, the officials are confident that the proposed divestment of 10% government stake in Deccan Infrastrcuture Company, a nodal firm promoted to take up real estate business, would generate revenue. ??We are expecting about Rs 2,000 crore from the disinvestment of Deccan Infrastructure,?? sources said.
