Amaravati: Despite the challenges posed by Covid-19, the state government seems to have put fiscal management on the right track.
The fiscal discipline followed by the state government has started to pay off as the PA reported the lowest budget deficit among neighboring states. Although the state has yet to recover from the bifurcation-induced revenue shortfall some eight years ago, the measures initiated by the YS Jagan Mohan Reddy government have injected the necessary energies into the fiscal health of the state.
Interestingly, the debt-to-equity ratio is considerably low over the past three years compared to the debts incurred over the previous period. PDT regime. The annual debt growth rate during the TDP regime between 2014 and 2019 was around 19.2%. This figure was reduced to 15.77 despite the Covid-19 having caused serious damage to income inflows over the past two years.
The last Controller and Auditor The General’s Preliminary Report (CAG) for the financial year 2021-22, puts the total debt incurred by the AP government during the year at ₹25,194 crore. The state government budgeted the borrowings in the 2021-2022 budget at ₹370.29 crore. This means that he had borrowed nearly ₹12,000 crore less than his anticipation.
Sources said the Center had recently warned several states of deteriorating fiscal health and urged them to tighten their belts. The Center reported circulating the latest fiscal condition in the states during the chief secretaries conference held in Dharmasala. “We performed well in a few segments, recovering in a few others. We may also need to improve in some other segments. Each setting is a different story and cannot be compared to any other setting or other states. said the Special Chief Secretary (Finance). SS Rawat Tell yourself.
He said the state government has been following fiscal discipline measures for the past three years. He said, however, that they are working overtime to straighten out the situation, as AP is the only state in the country to branch off without sufficient revenue or tax base.
He said they knocked on every door during Covid-19 to manage people’s health. He said they handled the situation without state migrations. “Yes, there is a lot to do. But we are working overtime to overcome the situation,” Rawat said.