CAG finds Andhra Pradesh calculations flawed
The CAG found that the total revenue deficit was about Rs 7,000 crore and not about Rs 16,300 crore as claimed by the government.
Hyderabad: The findings of the Comptroller and Auditor General regarding revenue deficit for financial year 2014-15 has given the Centre a weapon to counter the AP government's claim.
The AP government has been demanding that the Centre sanction about Rs 16,300 crore as assured in the AP Reorganisation Act to fill the revenue gap for the financial year 2014-15. So far, the Centre has released Rs 2,800 crore towards filling the revenue gap.
Chief Minister N. Chandrababu Naidu had said that he would write to Prime Minister Narendra Modi, requesting sanctioning of the balance amount.
In the 2014-15 Budget, the state government estimated revenue gap of '25,574 crore. In the revised estimates at the end of the financial year, the revenue gap was Rs 16,300 crore.
However, the CAG in its recent report on state finances for the year 2014-15 found fault with the state government for “over statement of revenue deficit”.
The CAG said out of total revenue deficit as estimated by the ÄP government, Rs 10,417.49 crore pertaining to combined state and about Rs 6,994.46 crore by way of conversion of power utilities loans were also included in the total revenue deficit.