The finances of Andhra Pradesh are slipping down rapidly. Call it due to Economic Slowdown or Inexperienced Administration, the Incomes of the State are continuing to suffer. In the budget for fiscal 2019-20, it is estimated that the state would rake 1,78,697.42 Crore from all the sources but the state only managed 85,987.04 Crore till January.
It is clear that the state did not even manage 50% of its target income so far. With just two months to go in this fiscal, it is impossible to reach the target. During the same time the last year, the state managed 91,755.93 Crore.
Usually, incomes improve year on year but now we have a revenue shortfall of 5,768.89 Crore only when compared to the last year. Normally, states set hefty targets in the incomes in their budgets and fall short. But then, in the last fiscal, by January, the State managed to achieve 59% of its target. With not even 50% this year, the state is well behind.
Even in this serious situation, the state government is not waking up to the reality and is continuing to dole out money in the name of Welfare Schemes. The end-impact is that there are almost zero spendings on Capital Expenditure which is necessary for creating long-term infrastructure. It has to be seen if things will be anything better in the next financial year.
