TDP presents budget sans new taxes despite deficit

Despite alarming deficit levels, Andhra Pradesh has presented a budget without new taxes. It has a sizable allocation for the controversial capital project.

The state’s first full-time budget post-bifurcation has shown a revenue deficit of Rs 7,300 crore and a fiscal deficit of Rs 17,584 crore for FY 2015-16.

The budget, presented by state Finance Minister Yanamala Ramakrishnudu on Thursday, stayed largely free of new taxes at a total value of over Rs 1,13,049 crore, nearly 1.1 per cent  more than the value of the 2014-15 budget which was Rs 1,11,823 crore.

The fiscal deficit comes to about three per cent of the GDP, while the revenue deficit works up to 1.1 per cent.

The finance minister fixed the non-plan expenditure at Rs 78,637 crore, while Rs 34,412 crore will be the planned outflow for the fiscal.

Unveiling plans to increase non-tax revenue, Yananmala said that the state would study and implement Tamil Nadu’s excise policy.

“The notable feature of the state economy is that its per-capita income, which stands at Rs 90, 517 for 2014-15, is growing rapidly and is expected to be doubled by 2018-19,” he added.

Highlighting the severe financial constraints the state faces, he said the money released by the Centre for current fiscal and allocation for 2015-16 proved inadequate.

Ramakrishnudu was nonetheless confident that the state would complete building its new capital on time, as he allocated Rs 3,168 crore for the project this fiscal.