Andhra Pradesh Finance Minister Yanamala Ramakrishnudu said that the financial condition of the state was alarming and stated that the government had to find alternative measures to recover the revenue losses.
Talking about the impact of demonetisation on the state’s revenues and finances on Tuesday, he said that the revenue deficit had increased by 7% and the finance deficit by 4%.
While the state expected the revenue deficit to be Rs 4,800 crore, it increased to a staggering Rs 14,134 crore, the Minister was quoted as saying.
Similarly the finance deficit, which was estimated to be about Rs 20,490 crore, had increased to Rs 24,000 crore in 2016.
Speaking to the media at the Velagapudi secretariat in Vijayawada he reportedly said that to overcome the financial crisis, the state would reduce expenditure in the budget, as the expenditure had exceeded the revenue in 2016.
However, he added that despite the cash crisis in the state, the government has planned to implement all its exisiting welfare schemes and make required allocations in the upcoming budget.
Post bifurcation, Andhra had faced a financial crisis after a huge gap between the estimated resources and expenditure in the financial year of 2015-16.
The government earlier estimated the total revenue including receipts from the Centre and its own revenue to be around Rs 27,000 crore from January to March 2016. However, the expenditure was Rs 37,000 crore, including Plan (projects) and non-Plan expenditure, which comprised of salaries, pensions and subsidies.