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| Edited By: K V Ramana |Source: DNA |Updated: Mar 29, 2018, 05:45 AM IST
Contrary to the rosy picture projected by the Andhra Pradesh government about the state of finances, the agriculture-based state is facing a slowdown in various sectors.
The growth in the gross state domestic product (GSDP) for 2008-09 dropped to 5.53% as against a 10.62% growth in 2007-08. The state’s GSDP in the year ended March 2008 was at Rs 2.39 lakh crore and for the year ended March 2009, it is being pegged at Rs 2.52 lakh crore.
The state’s fiscal deficit too climbed up from Rs 8,787 crore in 2007-08 to Rs 10,427 crore.
The effect of slowing down in the system is also evident in the per capita income. For the year ended March 2008, the per capita income was at Rs 35,864, up 17.82% over the previous year. However, for the year ended March 2009, the per capita is pegged at Rs 39,597, a growth of 10.41%.
Despite the signs of slowing down, Andhra Pradesh finance minister K Rosaiah presented an ambitious budget for the current financial year.
For the financial year 2009-10, the state has projected an expenditure of Rs 1.03 lakh crore. Of this, Rs 63,301.22 crore has been estimated as non-plan expenditure and Rs 40,184.11 crore as plan expenditure. “It is estimated that the revenue surplus would be Rs 2,406 crore. The fiscal deficit is estimated to be Rs 16,162 crore, which would be 3.96% of the GSDP,” Rosaiah said.
Indicating at the hardships the state would go through in the days to some, Rosaiah said, “As GSDP has a direct bearing on the revenues, there is likely to be a substantial shortfall in revenue receipts and capital receipts during 2008-09. However, the central government has enhanced the limit of fiscal deficit from 3% to 3.5% of the GSDP for 2008-09. For this year, the central government has decided to raise the fiscal deficit limit up to 4% of the GSDP, in order to make more funds available to the states for implementing some of the important infrastructure projects. Though this is not adequate, still this measure would give us some relief in planning our programmes.”
