Lok Sabha Question No. 147 (STARRED), answered on 2018-07-27
Subject: Revenue Deficit of Andhra Pradesh
Ministry: FINANCE
Asked by: KONAKALLA NARAYANA RAO, VENKATESWARA RAO MAGANTTI

## MINISTER OF FINANCE (SHRI PIYUSH GOYAL)

- (a) to (c): A statement is laid on the table of the House.

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE

## LOK SABHA STARRED QUESTION NO. *147

TO BE ANSWERED ON Friday, July 27, 2018/Shravana 5, 1940 (Saka)

## Revenue Deficit of Andhra Pradesh

## *147. SHRI KONAKALLA NARAYANA RAO: SHRI MAGANTTI VENKATESWARA RAO (BABU):

Will the Minister of FINANCE be pleased to state:

- (a)  whether the Government is committed to make up for the revenue deficit incurred by the State of Andhra Pradesh in 2014-15;
- (b)   if  so,  the  details  of  revenue  deficit  arrived  and  the  basis  on  which  that  figure  was reached; and
- (c)  whether  the  Government  has  given  a  formula  for  calculating  the  first  year  revenue deficit and if so, the details thereof?

## ANSWER

STATEMENT  REFERRED  IN  PART  (A)  TO  (C)  OF  THE  REPLY  TO  THE  LOK  SABHA STARRED  QUESTION  NO.  *147  BY  SHRI  KONAKALLA  NARAYANA  RAO  &  SHRI MAGANTTI VENKATESWARA  RAO  (BABU) 'REVENUE DEFICIT OF  ANDHRA PRADESH' DUE FOR ANSWER ON FRIDAY JULY 27, 2018

(a) : Yes.

(b) & (c): The successor State of Andhra Pradesh (GoAP) had reported Revenue Deficit as Rs. 16,079 crore for the year 2014-15 (2 nd June, 2014 to 31 st March, 2015). Audited figures as reflected in State Finance Accounts for 2014-15 published by AG (A&E), Andhra Pradesh and Telangana mentioned a Revenue Deficit of Rs.13775.76 crore for the reference period. This amount  was  arrived  after  taking  into  account  Rs.2303  crore  released  by  the  Central Government  (GoI)  during  2014-15.  Further,  AG  (A&E)  informed  that  launching  of  new schemes by  GoAP  viz.  Agriculture  Debt  Redemption  Scheme,  assistance  to  DISCOMS  for taking  over  Financial  Restructuring  Plan  Bonds,  assistance  to  APTRANSCO,  incentives  for industrial promotion and enhanced expenditure on INDRAMMA old age and disabled pension schemes  by  way  of  broadening  the  base  and  monthly  pension  rate  have  contributed  to revenue deficit of Rs.16078.76 crore.

In order to arrive at a realistic estimate of Resource Gap for the year 2014-15, Rs.11960.87 crore was disallowed which included expenditure on new schemes and impact of increase in monthly pension rate and broadened base of pensioners. However, arrears of Rs.91.27 crore pertaining  to  2013-14  and  paid  in  2014-15  were  included  in  the  Resource  Gap.  Thus,  the amount of the Resource Gap for the year 2014-15 (2 nd June, 2014 to 31 st March, 2015) was arrived  at  Rs.4117.89  crore.  Of  which  Rs.3979.50  crore  has  already  been  released  to  the successor State of Andhra Pradesh. Calculation of entitlement of resource gap of 2014-15 for the successor State of Andhra Pradesh is as below.

(Rs. in crore)

| Sl. No.   | Particulars                                                                                                 |   Based on letter dated 23.11.2016 of GoAP. |
|-----------|-------------------------------------------------------------------------------------------------------------|---------------------------------------------|
| A         | Revenue Deficit reported by Andhra Pradesh                                                                  |                                    16078.8  |
| B         | Items disallowed for arriving at entitlement of the State on the basis of standardised expenditure of which |                                    11960.9  |
| B.1       | RAITHU Sadhikara Samastha (Farmers Empowerment Corporation)                                                 |                                     4001.32 |
| B.2       | Agriculture Debt Redemption Scheme                                                                          |                                     3068.35 |
| B.3       | Assistance to DISCOMs for taking over of FRP bonds                                                          |                                     1500    |
| B.4       | Increase on account of Monthly pension rate and broadening of base of pensioners                            |                                     3391.2  |
| C         | Entitlement of the State on account of revenue deficit of 2014-15 (A-B)                                     |                                     4117.89 |
| D         | Less reimbursement made till date to the State of Andhra Pradesh of which                                   |                                     3979.5  |
| D.1       | Special assistance released during FY 2014-15                                                               |                                     2303    |
| D.2       | Special assistance released during FY 2015-16                                                               |                                      500    |
| D.3       | Special assistance released during FY 2016-17                                                               |                                     1176.5  |
| E         | Balance towards entitlement of the State on account of revenue deficit of 2014-15 (C-D)                     |                                      138.39 |