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Debt Burden On A Rise In The State: Cag On Ap!
By: Tupaki Desk | 27 Nov 2021 7:12 AM GMT
Andhra Pradesh is facing a severe burden on the state economy. With the government not shying away from spending huge amounts on the flagship schemes, the revenue deficit is getting bigger and bigger. This in turn resulted in a massive rise in the borrowings of the state.
The way the Andhra Pradesh government is dealing with the financial management had not pleased the Comptroller and Auditor General of India which had rapped the government on the same in its recent report. The constitutional Authority had come down severely on the state government.'
Calling the government's behavior unconstitutional, the CAG said the mismanagement and the capital expenditure had resulted in the revenue deficit reaching more than Rs 26,000 crore. The amount is quite higher than the estimation for the financial year 2019-20.
In its report, the Comptroller and Auditor General of India opined that the revenue deficit of Andhra Pradesh for the financial year 2019-20 that amount for Rs 26,441 crore should be attributed to the flagship schemes introduced by the state government. A dip in the state revenue is also a reason for the same, Cag opined.
The report also highlighted how the outstanding debt of Andhra Pradesh has been growing every year over the past few years which had mounted to Rs 3,01,802 crore in the current financial year which translates to more than 73 percent increase compared to 2015-16. For the financial year 2025-16, Andhra Pradesh recorded an outstanding debt of 1,73,854 crore.
Expressing its concerns over the massive rise in borrowings, the CAG in its new report opined that the situation in the state had reached a point that new debts were being taken to pay off the interests of the previous debts. The debts that had to be repaid rose to Rs 32,000 crore.
Compared to the previous financial year 2018-19, the revenue earnings of the state rose by 3.17 percent in this year, the report mentioned.
Having said that, the CAG report said that the government is spending more than the budget estimation approved by the Assembly. The CAG report was in the headlines after the Andhra Pradesh government introduced the report in its ongoing Assembly sessions.
The way the Andhra Pradesh government is dealing with the financial management had not pleased the Comptroller and Auditor General of India which had rapped the government on the same in its recent report. The constitutional Authority had come down severely on the state government.'
Calling the government's behavior unconstitutional, the CAG said the mismanagement and the capital expenditure had resulted in the revenue deficit reaching more than Rs 26,000 crore. The amount is quite higher than the estimation for the financial year 2019-20.
In its report, the Comptroller and Auditor General of India opined that the revenue deficit of Andhra Pradesh for the financial year 2019-20 that amount for Rs 26,441 crore should be attributed to the flagship schemes introduced by the state government. A dip in the state revenue is also a reason for the same, Cag opined.
The report also highlighted how the outstanding debt of Andhra Pradesh has been growing every year over the past few years which had mounted to Rs 3,01,802 crore in the current financial year which translates to more than 73 percent increase compared to 2015-16. For the financial year 2025-16, Andhra Pradesh recorded an outstanding debt of 1,73,854 crore.
Expressing its concerns over the massive rise in borrowings, the CAG in its new report opined that the situation in the state had reached a point that new debts were being taken to pay off the interests of the previous debts. The debts that had to be repaid rose to Rs 32,000 crore.
Compared to the previous financial year 2018-19, the revenue earnings of the state rose by 3.17 percent in this year, the report mentioned.
Having said that, the CAG report said that the government is spending more than the budget estimation approved by the Assembly. The CAG report was in the headlines after the Andhra Pradesh government introduced the report in its ongoing Assembly sessions.
