CAG Pulls Up Chandrababu Govt

The ( CAG)  Comptroller And Auditor General Of India has nailed Chandrababu Naidu for his  utter failure in the management of state finances.  
The CAG pointed out that the AP's revenue expenditure of Rs 1,16,215 crore at 16.62 per cent  of the Gross State Domestic Product (GSDP) was more than the budget estimates of Rs 1,14,168 crore. 
The report revealed that 85.17 per cent  of the revenue expenditure was met from revenue receipts and the balance was financed from borrowed funds registering a revenue deficit of Rs 17,231 crore in 2016-17. 
The Authority also observed that the devolution of funds by the Centre to Andhra Pradesh on the basis of the 14th Finance Commission led to increase in revenue expenditure and not capital formation. The Commission recommended that the States’ share of Central taxes be increased to 42% from 32% from 2015-16.
The total Central tax transfer to the State was Rs 26,264 crore in 2016-17 which  was Rs 1,627 crore (6.60%) less than the budget estimates. The Central tax transfers, however, were higher by Rs 4,370 crore (19.96%) compared with the previous year.
Referring to the Fiscal Responsibility and Budgetary Management (FRBM) Act, 2005, the CAG said the government was yet to amend the Act as per the recommendation of the 14th Finance Commission. 
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