No Answers from Government

The opposition parties both in Assembly and Council raised several important points during the debate on General Budget 2016-17 and on Appropriation Bill. Surprisingly, both the Houses did not receive any replies. The Government has numerical strength and bulldozed the proceedings. I want to raise some of those issues in the fond hope that you would at least reply to the people of the state.

  1. Why did you not provide the Accounts for 2014-15 in Budget in Brief and other books although it is customary to do so. You yourself in the seven budgets you presented to state Assembly gave the relevant figures always. Not only you, but during the last sixty years, except in the year 2016-17 previous year’s accounts were always given. There was certainly something that you wanted to hide from the Legislators and the people of the State.

  2. The CAG on the Accounts of the State for 2014-15 observed as follows:

‘3.1 Fiscal consolidation

State Government could not achieve the fiscal reform targets during the year. The State registered a revenue deficit (` Rs 24,194 crore1) during 2014-15 after eight consecutive years of revenue surplus. The fiscal deficit (` Rs 31,717 crore2) at 6.10 per cent was double the ceiling of three per cent prescribed in the FRBM Act. Total liabilities stood at 32.03 per cent of GSDP, against a ceiling of 27.60 per cent prescribed in FRBM Act for the year 2014-15.’

  1. I really wonder as to why the State suffered such huge Revenue deficit of Rs 24194 crores during 2014-15 when that the State earned Revenue Surplus for each of the preceding eight years? How could you register a fiscal deficit of 6.1% of GSDP when the FRBM permits only 3%?

  2. Did you get any specific permission for going upto 6.1% Fiscal Deficit from Union Government? If so, can you make it public? If not, who has funded such huge fiscal deficit in excess of the permissible limit? Is it not violation of law?

  3. We pointed out that illegally the State Government utilized about Rs 22,000 crores money of public deposits in 2014-15 to fund the fiscal deficit compelling them to reverse the same in 2015-16 as a result, the non-plan expenditure during that year was way below that of 2014-15. To cover up this, the State Government is saying that they achieved s avings while the fact is that they have only reversed an illegal entry during 2015-16 without actual expenditure.

  4. At para 16 of your budget speech 2016-17 you said and I quote

‘The Hon’ble Members are aware that unscientific bifurcation of the State resulted in the residuary Andhra Pradesh receiving 46 per cent of the revenues of the combined state while having 58.32 per cent of its population. This resulted in a revenue deficit of Rs 16,200 crores in the first ten months of the new State’s existence.

  1. The CAG reports on the accounts Telangana and AP are available for 2014-15, particularly for the periods 2nd June 2014 to 31st March 2015, it is clear that your claims of low revenues are completely incorrect.

The following table is extracted from CAG reports:

Revenues from 2nd June 2014 to 31st March, 2015




Telangana + AP



Rs. In Cr

Rs in Cr

Rs in Cr



Tax &Non-Tax






Central Taxes












Total Revenues

















  1. It may be observed from the above that AP’s revenues almost matched that of Telangana in terms of population percentage. Even Telangana implemented 43% employees’ fitment, Rs 1000 per month pensions and the so called agriculture debt waiver. How come you incurred such huge revenue deficit of Rs 24194 crores as against Telangana earning surplus?

  2. Similarly, we questioned the GSDP growth projections both for 2015-16 and 2016-17 by substantially pushing up the growth rate of fisheries and animal husbandry sections in a year of second consecutive year of drought. We also pointed out that the objective behind pushing up the GSDP growth rate was to borrow more money and that is what exactly the Central Government has pointed out today and reduced over Rs 69,618 cr from the projected GSDP figures for 2016-17. In our calculation, this is going to be further less than this figure as the 2015-16 GSDP figures have been substantially overstated and consequently the figures for 2016-17.

  3. If the State Government fails to provide satisfactory answers, we, as the main opposition party will be compelled to request the CAG and CSO to conduct enquiry into fudging of figures.

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