Summary:
This brought the fiscal deficit to GSDP ratio within the limit prescribed (3.25%) by the 14th Finance Commission at the end of the 2016-17 financial year. “During 2016-17, 85.17% of the revenue expenditure was met from revenue receipts and the balance was financed from borrowed funds, thus registering a revenue deficit of Rs 17,231 crore. VIJAYAWADA: The AP government had not met the Macro Economic Framework Statement to reduce its fiscal deficit to 3% of the Gross State Domestic Product (GSDP) from the targeted 3.25% in FY 2016-17, according to the Comptroller & Auditor General.The fiscal deficit of Rs 30,908 crore, at 4.42% of GSDP, was still more than the prescribed limit.“During 2016-17, a loan of Rs 1,670 crore was repaid by AP Housing Corp to the state government on the last date of the financial year. This is fraught with the risk of progressive weakening of state finances over a period of time,” the government’s auditor says.Referring to expenditure, the CAG says that excess expenditure over the allocation amounting to Rs 53.673.19 crore pertaining to the years from 2004 to 2016 was yet to be regularised as of November 2017. However, the same amount was credited back to the account of the corporation on April 18, 2017 by the AP government,” the report released by finance minister Yanamala Ramakrishnudu said on Friday.The report says that the Andhra government is yet to amend its Fiscal Responsibility and Budgetary Management Act 2005, as per the recommendations of the 14th Finance Commission.Striking a note of caution, the report says that AP’s revenue expenditure of Rs 1,16,215 crore was at 16.62% of GSDP, which was more than the Budget estimates of Rs 1,14,168 crore..