State deficit hits a record high

The state has witnessed a huge revenue deficit in the first quarter of this fiscal from April to June, according to data released on Monday.

While the total revenue stood at `19,489 crore, the government spent `31,029 crore, resulting in a revenue deficit of `10,540 crore. This is the highest-ever revenue deficit since the formation of the state three years ago.

Official sources in the finance department said a revenue deficit was common in the first quarter of any financial year due to lower tax collections. It was higher this time as more money was spent on welfare schemes, irrigation and other infrastructure projects in the first quarter.

Out of `19,489 crore revenues earned by the government, `2,366 crore came in the form of tax devolution from the Centre and `2,262 crore as grants-in-aid.

The state government had spent `31,029 crore in the first quarter, of which `21,930 crore was revenue expenditure and `9,099 crore was capital expenditure.

The higher expenditure was on account of `4,250 crore released to banks towards the last and final instalment of crop loan waiver scheme besides clearing of over `2,000 crore fee reimbursement arrears of students.

Bills amounting to `4,000 crore were cleared to contractors of irrigation projects and Mission Bhagiratha.

The government raised `10,540 crore through loans and sale of bonds to meet the expenses.

Telangana remains the only ‘revenue surplus state’ after Gujarat. The government is confident of posting ‘revenue-surplus’ figures by the end of this fiscal.