Andhra Pradesh state is a newly formed state and still, the financial and economical status of the state is not consolidated yet. For past four years, Nara Chandrababu Naidu, Chief Minister and his followers, ministers and others have been saying that the state will one day become self-sustained and they don’t need any kind of help from Centre or any other state.
Pawan Kalyan, too found out how half-baked these statements are and how CBN is running the state to tethers. He asked for people to forgive him for supporting a bad Goverment believing it will do good.
Now, CAG report has reinstated that AP state is in huge debt and people will have to face all the trouble to pay back the loans.
CAG report clearly mentioned that the state is running on huge debt amount than the income. At least 2.03 times more than income, is the debt of the state.
In the 2016-17 financial year, CAG clearly stated that Rs. 17,231 croses have been used for daily Revenue needs by taking loans from various Internatonal finance companies. If we look at some of the key details in the report,
* In 2016-17 year, state budget the revenue expenditure is said to be Rs. 1,14,168 crores but the actual expenditure is Rs. 1,16, 215 crores.
* For 2016-17 financial year, 85.17% of the expenditure is from income of the state and rest is debt amount.
* In the said financial year, the expenditure increased by Rs. 20,265 crores. If this trend of using loan money for revenue expenditure, then in the near-by the loan repayment pressure will increase and it will increase state taxes for all the common people.
* After 2016-17 financial year, the debt amount on AP state has increased to 2,01,314 crores. This is 28.79% of Gross State GDP and 2.03 times more than revenue income.
* If we add all loans taken by State Government, that are not been stated in Budget, the debt amount rises to Rs. 2,22,845 crores. More than revenue income, state is more dependent on loans acquired from elsewhere to run the state.
* The capital expenditure of state for 2016-17 financial year is limited to 11.48%. This is much less than 19.70%, the average capital expenditure of normal status states in India. In another 7 years, state has to pay more than 50% of loans amounting to Rs. 76,888 crores. This will increase taxes on common people for sure in the coming years.