Hyderabad: In its first full-fledged Budget 2015-16, the Andhra Pradesh government on Thursday presented a Rs 1,13,049 crore Budget with an estimated non-plan expenditure of Rs 78,637 crore and plan expenditure of Rs 34,412 crore, projecting a revenue deficit of Rs 7,300 crore.
The bifurcation of undivided Andhra Pradesh had a massive impact on the state's finances, AP State Finance Minister Y Ramakrishnudu said in his Budget speech.
"The honourable members are also aware that there has been a huge impact of state bifurcation on state finances and that the state is not even left with reasonable resources for a meaningful plan outlay.
"Even after taking into account devolution on account of 14th Finance Commission recommendations and expected resource flow out of Union Budget 2015-16, the state continues to reel under revenue deficit. This deficit continues even after the last year of the award of 14th Finance Commission," Ramakrishnudu said.
AP State Finance Minister proposed an expenditure of Rs 1,13,049 crore -- an estimated non-plan expenditure of Rs 78,637 crore and plan expenditure of Rs 34,412 crore.
The debt burden and fiscal deficit will continue to increase as borrowings to meet revenue expenditure continue, he said.
"We had requested 14th Finance Commission to provide us with a grant of Rs 1,00,213 crore for capital construction and Rs 41,253 crore for other critical infrastructure requirements. The 14th Finance Commission has provided only Rs 22,113 crore as revenue deficit grant and Rs 1,823 crore towards disaster management.
"As against the requirement of Rs 29,805 crore for urban local bodies projected by us only Rs 3,636 crore has been provided and rural local bodies as against the requirement of Rs 18,633 crore only Rs 8,654 crore has been provided," he said.
Observing that the state has also suffered blows in the form of the devastating Cyclone Hudhud and drought in large parts of the state, he said that the government is moving ahead to realise the dream of a 'Swarna (golden) Andhra Pradesh'.