NOTE BAN HIT AP HARD: YANAMALA

Andhra Pradesh finance minister Yanamala Ramakrishnudu said that the financial position of the state is alarming and the state is in deep trouble. He said the revenue deficit has mounted to `14,000 crore, and the finance deficit has reached `24,000 crore. Demonetisation has hit AP’s revenues and finances hard, he added.

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 `14,000 crore, and the finance deficit has reached `24,000 crore.

Addressing a press conference at the Velagapudi secretariat on Tuesday, the finance minister said that demonetisation has had an adverse impact on the state’s revenues and finances. The revenue deficit has increased 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-November 2016. He suggested that expenditure should be reduced in this budget, and mentioned that this time Nala tax collection responsibility would be given to local bodies. Mr Ramakrishnudu sa-id he had expected the revenue deficit to be `4,800 crore, but it has escalated to `14,134 crore, and at the same time the finance deficit, estimated at about `20,490 crore, is `24,000 crore in this fiscal year. As the expenditure has exceeded revenue, the revenue deficit had increased by 3.5 per cent.