Telangana’s financial management stronger than Andhra Pradesh : CAG

As per the latest Comptroller and Auditor General (CAG) report, The financial management of Telangana state is better than that of neighboring Andhra Pradesh.

The Telangana state government had projected only Rs 5,520 crore revenue surplus in the budget estimate, but at the end of the financial year, it was Rs 7,523 crore. While, AP government has a revenue deficit of Rs 11,726 crore at the end of the 2018-19 financial year, against the budget projection of Rs 5,235 crore revenue surplus.

The cause for the income deficit against the income surplus budgetary projection is the AP government’s indiscriminate borrowing wherever possible to woo the voters. The former AP government headed by N. Chandrababu Naidu doled out many sops to the people before the Assembly elections, which put a burden on the state.

AP government’s total revenue receipts were 77.92 per cent of the budget estimate while in Telangana it was 78.45 per cent. The main difference was in the capital receipts. At the end of the financial year, the total capital receipts in AP were 169.04 per cent of the budget estimate, while in Telangana state it were 84.24 per cent.

The AP government projected capital receipts of Rs 24,705.21 crore in the annual budget, but the capital receipts were Rs 33,751.39 crore at the end of the financial year. The projected capital receipts in the government of Telangana State were Rs 36,884.24 crore and it ended the financial year with capital receipts of Rs 24,135.91 crore.

Telangana’s revenue expenditure was 76.71 per cent of its budget projection and in AP it was 95.81 per cent.

Compared to the previous financial year, the revenue expenditure in TS increased by 1.87 per cent in 2018-19 and in AP by 11.68 per cent.

The development of the state depends on capital expenditure in creating assets for the state. The AP government borrowed more but spent less in capital expenditure. The capital expenditure increased by 15.88 per cent in Telangana state in 2018-19 compared to the previous year and in AP decreased by 7.18 per cent.

Source | DC