Andhra Pradesh government carry on with financial struggle to clear the salary bill for January 2015.
RBI has lent 1,000 crore to AP State government last month as it is in short of funds .The amount of Rs. 2,200 crore must pay to employees by AP state.Adding to this situation the Centre also imposed a cut on release of Central taxes to all the States by 50 per cent for February and released Rs.500 crore to the State as against Rs.1,100 crore.
The State’s own tax revenue accruals for January were Rs.2,794 crore against the target of Rs.3,381 crore and the non-tax revenue was Rs.123 crore against the targeted Rs.814 crore. The commercial tax revenue for January was only Rs.2,156 while the estimated target was Rs.2,599 crore, excise Rs.175 crore (Target Rs.364 crore) and mines- Rs.54 crore (Rs.110 crore). Only Stamps and Registration Department earned Rs.278 crore exceeding the target of Rs.222 crore in view of improved real estate transactions.
However, sources said that Centre as part of its assurances under the State Reorganisation Act would be releasing some funds in the second week of February, after Delhi Assembly elections. Chief Minister N.Chandrababu Naidu is also scheduled to go to Delhi on February 8 for a three-day visit.The State is expecting a satisfactory package under various heads – funds to make up for the revenue deficit of Rs.16,000 crore, industrial incentives, special development package, capital funding and these were decided during the previous meetings between the State and the Central officials, sources added.