Vijayawada: Andhra Pradesh finance minister Yanamala Ramakrishnudu has stated that the financial position of the state is alarming and the state is in deep trouble.
He said the revenue deficit has mounted to Rs 14,000 crore, and the finance deficit has reached Rs 24,000 crore.
Addressing a press conference at the Velagapu-di secretariat on Tuesday, the finance minister said that demonetisation has had an adverse im-pact on the state’s revenues and finances. The revenue deficit has incr-eased by seven per cent and the finance deficit by four per cent.
Revenue has fallen by seven per cent post-demonetisation compared to December 2015-Novem-ber 2016. He suggested that expenditure should be reduced in this budget, and mentioned that this time Nala tax collection responsibility wou-ld be given to local bodies. Mr Ramakrishnudu sa-id he had expected the revenue deficit to be Rs 4,800 crore, but it has escalated to Rs 14,134 cro-re, and at the same time the finance deficit, estimated at about Rs 20,490 crore, is Rs 24,000 crore in this fiscal year. As the expenditure has exceeded revenue, the revenue deficit had increased by 3.5 per cent.
