A.P. Assembly approves ₹41,590 crore grants for key departments

The Andhra Praqdesh Legislative Assembly on Wednesday approved grants related to the Ministry of Finance, Planning, Commercial Taxes and Legislative Affairs (for fiscal administration, planning, surveys and statistics, commercial tax administration, and expenses of the State Legislature) amounting to nearly ₹41,590 crore, a substantial chunk of would be spent on debt servicing and payment of employees’ pensions and other retirement benefits.

Besides, the Assembly approved grants of approximately ₹863 crore for the Governor and Council of Ministers and for general administration and elections.

Finance Minister Payyavula Keshav said that the government was gradually improving the extremely difficult situation created by a legacy debt of ₹9,74,000 crore, and it could bring down the average rate of interest from 12.5% to 9.1%.

“The government has cleared ₹24,811 crore of liabilities in recent months and paid ₹37,000 crore on pending works bill,” he said.

Eighty-five Centrally sponsored schemes, that came to a halt during the YSR Congress Party’s (YSRCP) tenure, were revived by paying ₹18,750 crore towards the State’s share.

Efforts are being made to mobilise more funds under Special Assistance to States for Capital Investment (SASCI) scheme for which only one more month remained.

Mr. Keshav said concerted efforts were being made to increase the State’s own tax revenue, pointing out that total tax revenue registered a 6.20% increase post-GST reforms compared to 5.70% achieved at the national level.

He said Andhra Pradesh stood in the second position in commercial tax earnings in South India after Karnataka. Since the line between collecting taxes due to the State effectively and harassment was very thin and the State could not afford to have its business-friendly image tarnished, the government was treading cautiously in doing recoveries, he said, adding that as the issue of fake bills was inter-State in nature, it was being tackled with the Central government’s support.

As far as the Planning Department was concerned, Mr. Keshav said it was dormant during the YSRCP rule but has been activated by Chief Minister N. Chandrababu Naidu by involving them in drawing up a vision and setting key performance indicators for the sake of accountability.