Andhra Pradesh government has raised its hands while announcing CM Naidu that the government is running out of money to pay salaries to its staff despite the hike in its revenues in the first half of the budget year.
The state recorded a 12.26 percent growth rate in the first quarter of the financial year and is observing a 15 percent annual growth. But, Andhra Pradesh Chief Minister N Chandrababu Naidu reflected the sarcasm in the state’s economic story and said AP is finding it difficult to cope up with the expenses.
Government is running on huge overdraft: CM Naidu
“We have no money for salaries. We are already running on huge overdraft,” CM Naidu admitted as quoted by PTI.
The revenue of the state rose to Rs22,800 crore in the first half of 2016-17 fiscal year as against Rs 20,166 crore in corresponding period last year, a 13.5 percent increase. In fact, the government estimated overall revenue deficit of Rs 4,868 crore in 2016-17, but increased expenditure has widened the gap.
“There is a heavy burden on government expenditure and adjustment of finances has become problematic. We have reached the financial deficit but we are somehow pulling the cart either by borrowing through internal adjustments,: Finance Minister Yanamala Ramakrishnudu said.
Sources reveal conversed than government statement.
As per the PTI sources, over Rs, 100 crores were spent on the chief Minister’s offices and residences in Hyderabad and the capital region whereas more than 500 crores have been spent so far on the construction of the Government Transitional Headquarters.
