CAG report confirms revenue & other deficits for AP

The Andhra Pradesh government on Wednesday introduced the Comptroller and Auditor-General report in the State Assembly for the first time after the split of the combined AP. The report puts the revenue deficit at Rs 24,194 crore for the first year 2014-15 and monetary deficit at Rs 31,717 crore. The report points out that under the Fiscal Responsibility and Budget Management rules, the State had 6.10% deficit as against the permitted 3%. Under the non-planned expenditure head, the State had run Rs 13,134.68 crore additional expenditure. Even before the combined AP was split, it was predicted that Andhra Pradesh would face a revenue deficit because the revenue collection was largely confined to Hyderabad. Despite the deficits, the then United Progressive Government led by the Congress went ahead and cut the Gordion knot of Andhra Pradesh, virtually scoring a self-goal.