The AP budget for 2022-23 will be presented on Friday
Andhra Pradesh’s budget for the financial year 2022-23 will be presented to the Legislative Assembly on Friday, at a time when state budget management is under a cloud.
For 2021-2022, the YS Jagan Mohan Reddy government presented a budget last year with an estimated expenditure of Rs 2.29 lakh crore, but the auditor, CAG, found glaring shortcomings in the budget management of the state.
In a recent letter to the state government, the Principal Accountant General (PAG) pointed out that in 124 cases, a staggering amount of Rs 94,399.04 crore was spent ‘without any budget provision’ over the past three first quarters of the current fiscal year. .
“Many departments failed to follow government instructions, in addition to failing to comply with code provisions, resulting in improper or excessive budgeting,” PAG observed in a letter to the Special Chief Secretary ( finance).
In 2,214 cases, he pointed out, “no expenditure” was incurred although there was a provision of Rs 30,327.26 crore in the budget.
According to CAG accounts up to January 2022 of the current year, the state government has failed to provide required information on borrowings from the public account and guarantees for loans guaranteed by the companies. State.
These shortcomings aside, the spiraling revenue shortfall, coupled with a high percentage of fiscal deficit, has been a major source of concern.
According to the CAG accounts, AP’s revenue shortfall in the first ten months of the current financial year stood at Rs 45,978.23 crore, which is 919.55% higher than the budget estimate of just Rs 5,000 crore.
The budget deficit hit Rs 58,669.79 crore, against the estimate of Rs 37,029.79 crore, indicating that the state in just ten months has borrowed Rs 21,640 crore more than the sum authorized by the legislature .
Jagan Mohan Reddy’s government attributed this to “the current chaotic times” as the Covid-19 pandemic limited economic activity.
“The actual achievement against what was budgeted reflects the efficiency of the budget exercise and during turbulent times there is a reduced ability to budget effectively,” noted Chief Minister’s Special Secretary Duvvuri. Krishna.
He said the government was “respecting the limits” stipulated by the central government as well as the standards of fiscal responsibility and budget management.
“The debts incurred by the current government only contribute to socio-economic progress, whether for the construction of hospitals, infrastructure, the improvement of schools, direct transfers of benefits, roads, etc. ‘, Krishna asserted.
Significantly, the CAG accounts reveal that state finances have largely improved from 2020-2021, with revenue receivable reaching Rs 1,11,792 crore, including state tax revenue from Rs 80,027.88 crore in the first ten months.
However, the overall income is only 63% of the budget estimate of Rs 1,77,196 crore.
Revenue expenditure also peaked at Rs 1,57,770 crore, of which more than Rs 50,000 crore went for the many gift programs alone.
The state, however, incurred capital expenditure of only Rs 11,579.47 crore (37.88%) out of the estimated Rs 30,571 crore in ten months.
Against this backdrop, Finance Minister Buggana Rajendranath will present the 2022-23 budget at 11 a.m. on Friday, with indications that the size might be a bit larger than last year’s Rs 2.29 lakh crore.
(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)