Every Month is a virtual battle for Andhra Pradesh since the state bifurcation. The state has a huge revenue deficit inherited from the bifurcation and from then increasing expenses of Amaravati and various welfare schemes are taking a toll on the state finances.
And now, an even bigger threat awaits the state in the form of GST which will start rolling from July 1st. GST will replace all taxes and will levy a single tax. State Governments will be losing their incomes which will be reimbursed by the center later.
All the states including Andhra Pradesh will face a tough time in this month and July. Due to the transition to GST, Center will not disburse money for states in June and July. Central funds will come to the state only in the first week of August.
This shortfall will take a heavy toll on the state finances and will make even the day to day expenses tough. Until now, Andhra Pradesh receives 3000 Crore every month from the Center as its share in Central Taxes. The shortfall will be to the same extent.
