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GOVERNMENT OF ANDHRA PRADESH

WHITE PAPER ON STATE FINANCES

09 July 2014
FINANCE DEPARTMENT

Contents
1.

Introduction ........................................................................................................................ 4

2.

Economic scenario .............................................................................................................. 5

3.

State Finances .................................................................................................................... 10

4.

States Own Revenue ......................................................................................................... 11

5.

Composition of total expenditure ........................................................................................ 15

6.

Debt Position ..................................................................................................................... 16

7.

Interest Payments& Plan Expenditure ................................................................................. 17

8.

Implications of the State Division ....................................................................................... 20

9.

Conclusion

ii

27

ANNEXURES

Structure of State Receipts

States Own Tax Revenue

II

States Own Non-Tax Revenue

III

Debt Servicing Costs

IV

Loans and Advances by the State Government

Expenditure on Salaries on and Establishment

VI

Annual Plan Outlays

VII

Pattern of Plan Financing

VIII

Trends in Developmental Expenditure

IX

Revenue Receipts and Expenditure

Fiscal Deficit and Interest Payments

XI

Year-wise Gross State Domestic Product

XII

Comparative Strength of Employees

XIII

iii

1.

Introduction

1.

Andhra Pradesh State, notwithstanding the bountiful natural resources, internationally valued

human resources and the entrepreneurial dynamism, had shown little economic vibrancy in the nineteen
sixties and seventies, growing at an annual rate of 2.11 and 3.01 per cent respectively, far behind the
national average. The economic growth trajectory of the State took an upward turn in the eighties,
during which the States economy had grown on an average around 5.21 per cent annum. However, the
State continued to lag behind the national growth momentum during the eighties. While the launch of
first generation reforms at the national level in the early nineties had kick-started the national economy,
the real upturn started in the Andhra Pradesh economy with the launch of second generation reforms in
the second half of nineties.
2.

The comprehensive reform package, that were launched in the second half of the nineties,

coupled with strategic investments in infrastructure, education, population stabilisation, human


resources development, job creation, etc., had carried the State to the highest annual economic growth
of 8.16 per cent in 2000-01 financial year, nearly twice the national growth rate for the same year. This
growth momentum, the result of far reaching economic and fiscal reforms, good governance, and
strategic investments and development partnerships created and built between 1995 and 2004, continued
unabated until 2007-08, during which the State retained lead over the national growth march. However,
the tide turned for the worst in 2008-09 and the downward spiral continues to haunt the State until now.
3.

Since 2008-09, the State hadbeen characterised by misgovernance, corruption scandals, and lack

of development vision and strategic direction, which together have seriously affected the economy of the
State, stalled the growth momentum, undermined the reputation and standing of the State as a model of
good governance and development and downgraded the stock of Brand Hyderabad that was built
through systematic and arduous efforts. The endless procession of agitations, strikes, and civil strife,
coupled withlack of investment in both infrastructure and human development have caused a major
setback not only to the growth momentum but also to poverty alleviation efforts. The overall slowdown
in the national economy, contraction of job opportunities, consistently high levels of inflation have
compounded the crisis and have created a sense of gloom and doom in the minds of Andhra Pradesh
citizens.

4.

The sense of alienation and despondency was further compounded by the manner in which the

State was reorganised by the previous central government. Andhra Pradesh Reorganisation Act 2014 has
divided the State of Andhra Pradesh without an iota of concern for or attention to the disastrous
economic and financial consequences on the residuary Andhra Pradesh. The previous Government at
the Centre choose to distribute the assets based on location, while apportioning liabilities on the
population ratio, as most of them were common liabilities. Considering that virtually all the major assets
are located in and around Hyderabad city, Andhra Pradesh has forfeited major economic assets and
inherited massive liability without having the wherewithal to service the debt.
5.

In this background, this paper is intended to review the economy of the undivided State of

Andhra Pradesh during the past decade, analyse the impact of AP Reorganisation Act on the fiscal
situation of residuary Andhra Pradesh and pre-set the likely fiscal scenario in 2014-15 financial year.
2.

Economic scenario

6.

The Gross State Domestic Product (GSDP) growth rate of Andhra Pradesh, the Gross Domestic

Product (GDP) growth rate of the country as well as Sectoral Growth rates since 1960 are given in
Table-I.
(Rs. Crores)
Table-1
Sectoral Growth rates (%) of GSDP (at Constant prices) of Andhra Pradesh & India
Period /
Year

Sectoral growth %
Agriculture
AP

Industry

India

AP

AP -Growth

Services

India

AP

India

of GSDP (%)

India Growth of
GDP (%)

1960-71

1.07

6.74

5.15

11.25

3.59

5.66

2.11

7.08

1970-81

1.18

7.09

5.97

0.74

5.02

4.95

3.02

5.01

1980-91

3.79

12.89

7.20

5.24

8.26

4.62

5.21

7.17

1990-01

2.95

4.02

6.56

7.33

6.43

5.19

5.42

5.29

1999-00

-2.28

2.67

3.50

5.96

8.88

12.05

4.58

8.00

2000-01

13.16

-0.01

-2.30

6.03

7.73

5.07

8.16

4.15

2001-02

-1.53

6.01

6.35

2.61

7.69

6.61

4.22

5.39

2002-03

-7.76

-6.60

12.14

7.21

6.30

6.74

2.73

3.99

2003-04

15.14

9.05

6.29

7.32

7.92

7.89

9.35

7.97

2004-05

4.45

0.18

8.89

9.81

9.72

8.13

8.15

6.97

2005-06

6.12

5.14

10.05

9.72

11.04

10.91

9.57

9.48

2006-07

1.97

4.16

17.60

12.17

12.48

10.26

11.18

9.57

2007-08

17.38

5.00

10.87

9.67

10.30

10.27

12.02

9.32

2008-09

0.76

0.09

7.15

4.44

9.53

9.98

6.88

6.72

2009-10

0.21

0.81

3.04

9.16

7.07

10.45

4.53

8.59

2010-11

5.00

8.60

9.97

7.55

15.04

9.67

11.64

8.91

2011-12

0.88

5.02

7.31

7.81

15.04

8.65

7.51

6.69

2012-13

7.21

1.42

- 0.46

0.96

6.95

6.96

5.09

4.47

2013-14

6.43

4.64

1.30

0.65

7.02

6.86

5.51

4.86

AE: Advanced Estimate: FRE: 1st Revised Estimate, SRE: 2nd Revised Estimate: TRE: 3rd Revised Estimate
(Final Revision).

7.

As seen from the table, until the 1990s the average growth of GSDP of AP remained below the

growth rate of GDP of the country. The rate of GSDP increased from 1.8% in the 1960s to 2.8% in the
1970s, to 4.92% in 1980s and to 5.2% in the 1990s. In reality, the State had experienced fiscal
imbalances moderately in 1980s and steeply in the 1990s. To turn around this situation, A.P. had set
itselfa determined Vision-2020 and stood as one of the pioneering States in initiating reforms to restore
fiscal health in right earnest at the sub-national level. The Government of A.P. had initiated various
measures during 1995-2003 covering resource mobilization, moderation / management of government
expenditure, which showed reasonable level of success. As a result, the growth of GSDP gathered
greater momentum between 1995-96 and 2004-05 and grew at a sustained rate of 5.8% per annum. In
sharp contrast to the past trends, the states economy registered a growth of 8.1% in 2000-01 compared
with national growth rate of 4.15 %. This was facilitated by an impressive growth of 13.16% in the
agriculture sector in that year registering an impressive recovery from the earlier years.
8.

The reform process in the late nineties was directed at augmenting revenue resources and

minimising less productive expenditure. Restructuring expenditure included improvement in operations


and maintenance (O & M), spending on education and health and increasing capital investment. It also
included rationalising subsidies, inviting private sector participation in the infrastructure sector and
framing growth-enhancing policies. Better maintenance of existing assets in preference to starting new

projects, completing on-going projects through critical balancing investments, zero based evaluation of
every scheme, phasing out ineffective ones and base budgetingon a realistic estimate of resources was
given focus.
9.

While GSDP growth sustained the momentum of earlier years between 2004-05 and 2007-08

averaging rates higher than national growth rates, it fell precipitously to 6.8% in 2008-09 from a high of
12.02% in 2007-08. It continued to decline to 4.53% in 2009-10 and notwithstanding a modest recovery
in 2010-11 the growth rates in the past 3 years have averaged around 5.10%.
10.

Sectoral Growth Trends:

One can also see from the sectoral growth rates given in the table

that the economy during the last 10 years has shown mixed trends. Barring the services sector, which
maintained a respectable growth rate of around 9.78% p.a. during 2004-14 decade,the growth of
agriculture and industrial sectors has been uneven and volatile. The industrial sector posted negative
growth in the year 2012-13 and has failed to demonstrate the resilience of earlier decade. The reason for
better showing of the services sector was because of the initiatives by the Government in late 1990s and
early 2000s, especially in the IT Sector and tourism sector. Besides evolving strategies for making state
capital of Hyderabad as IT Hub, ISB, IIIT etc. took shape during the period. APSWAN, TWINS,
CARD (computer aided registration department) etc. have helped to have a strong foundation for the
growth of services sector. However, the growth story of the States economy that entered a higher
growth trajectory in the early years of last decade has been witnessing a sharp slowdownand downward
journey since 2008-09.
(Rs. Crores)
Table-2
Trends in Per Capita Income-Andhra Pradesh and All-India
Period/
years

Average annual Per


capita income at current prices
(Rs)
AP
India

Average annual
growth of per capita
income (%)
AP
India

Ratio of per
capita income
of AP to allIndia (%)

1970-81

4904

5575

0.94

1.12

88.0

1980-91

6160

6788

3.04

3.24

90.7

1990-01

8865

9587

4.01

3.98

92.5

1999-00

15507

15881

4.26

4.56

97.6

2000-01

16622

16173

7.19

1.84

102.8

11.

2001-02

18573

17782

11.74

9.95

104.4

2002-03

19434

18885

4.64

6.20

102.9

2003-04

21931

20871

12.85

10.52

105.1

2004-05

25321

24143

15.46

15.68

104.9

2005-06

28539

27131

12.71

12.38

105.2

2006-07

33135

31206

16.10

15.02

106.2

2007-08

39727

35825

19.89

14.80

110.9

2008-09

46345

40775

16.66

13.82

113.7

2009-10

51114

46249

10.29

13.42

110.5

2010-11

62148

54021

21.59

16.80

112.1

2011-12

69742

61855

12.22

14.50

112.0

2012-13

78958

67839

13.21

9.67

113.7

2013-14

88876

74380

12.56

9.64

119.1

Per Capita Income: The per capita income of the State as seen from the above table remained

below national average until 1999-2000, witnessed turn around in 2000-2001. The per capita GDP of
the State increased from 2.8% in the 1980 to 3.9% in the 1990s and to 4.8% during 2000-05. The
percapita income of the Stateremained higher than national average in all the years since 2000-2001
partly due to higher national average growth of the states economy and also largely due to moderation
in population growth. In the year 2013-14 for which the latest data is available, per capita income of the
State at current prices stood at Rs.88,876, as compared with the national average of Rs.74,920.
GROWTH OF POPULATION
Year

12.

Percentage

% decadal change

Decade ending

1991

24.2

Decade ending

2001

14.59

9.61

Decade ending

2011

10.98

3.61

As seen from above, the decennial growth of the population of the state, which was 24.2%

between 1981-91, declined to 14.59% between 1991-2001. It further came down to 10.98% between
2001-2011. While the population growth declined by an astounding 9.61 per cent during 1991-2001, the

decline was 3.61 during the decade of 2001-2011. No other State or even nation had managed to reduce
the Total Fertility Rate (TFR) from 3.6 to 1.8, and stabilise the population growth in less than a decade.
This was made possible by the policies and programmes of the Government that focused on literacy
improvement, womens empowerment and population stabilisation between 1995 and 2004.
LITERACY PROGRESS

13.

Year

Percentage

% Increase

Decade ending

1990-91

44.1

Decade ending

2000-01

60.47

16.37

Decade ending

2010-11

67.02

7.19

Similarly, the major impetus given by the Government for expansion of quality education in the

second half of nineteen nineties, had resulted in a quantum jump in the literacy rates between 1991 and
2001. An astounding 16.37 per cent of the total population joined the literate pool during this decade.
This education march has stalled in its tracks during the past ten years, adding only 7.19 per cent to the
literate brigade, leaving one third of the adult population without the ability to read or write.
14.

The comprehensive economic and fiscal reform package coupled with growth enhancing policies

and programmes implemented effectively between 1995 and 2004, which inter alia included a clear
development vision, effective governance, strategic investments in infrastructure, industrial
development, and employment generation; massive expansion of services and consequential exponential
increase in employment opportunities, development of Hyderabad as knowledge and information
technology hub, and establishment of well defined goals, objectives and the process for all round
development enshrined in VISION 2020, together had transformed the development paradigm of the
State and set the stage for a major leap of the State. Unfortunately, between 2004 and 2014, the
Governments had not only failed to harness the growth momentum of earlier years, and instead had
undermined the institutional dynamism and the growth-centred governance systems built between 1995
and 2004.
15.

The deceleration of growth momentum that characterized the State during the past 5 years is a

matter of serious concern. While the global and national factors have partly contributed to the situation

the major responsibility is attributable to the breakdown of effective governance, political upheaval and
sharp decline in the investors confidence in the State. Reorganisation of the State has further
accentuated the problems that would continue to haunt the residuary state of Andhra Pradesh.
3.

State Finances

16.

State Finances have been under stress for well over a decade on account of various factors such as

increase in the establishment costs (salaries and pensions), rising interest payments, welfare
commitments, power sector expenditure, etc.This fiscal stress is the result of expenditure commitments
rising faster than revenue receipts, less than anticipated returns from major projects in irrigation, power,
etc. and the increasing debt burden of the government. The structure of state receipts under the broad
categories of revenue and capital with figures for the last decade are given in the Annexure - I.
17.

It needs to be noted that the enactment of Fiscal Responsibility and Budget Management Act

(FRBM) in 2005 mandating elimination of revenue deficit and containing fiscal deficit at 3 per cent of
the GSDP and the introduction of Value Added Tax (VAT) greatly contributed to the overall fiscal
stability of the State. The improvement in the State finances that started because of various reforms
initiated during late 1990s continued till 2007-08. The improvement in the fiscal situation during the
period was not only because of overall buoyancy in the economy but also due to tax reforms. The tax
rates, which were ranging from 4 to 20% during 2005, were replaced with Value Added Tax(VAT) that
brought out a sea change in tax structure. VAT rates were revised subsequently. Introduction of VAT
resulted in enormous growth in tax revenue. In addition, excise revenues, on account of increased
liquor consumption, showed greater buoyancy. There was also marginal improvement in the transfers
from centre from 4.95% of GSDP to 5.01 %of GSDP for the same period. However, since 2008-09 there
has been a slowdown in the revenue growth.
18.

In this context, it is significant to note that while the per capita taxation in the State was Rs

2,266.90 in 2000-2001, it increased three fold to Rs 7,136.76 by 2010-11. Notwithstanding such a steep
increase in per capita taxation rates, the revenue accruals to the State exchequer have been showing
consistently downward growth spiral since 2008-09.

10

4.

States Own Revenue

19.

The percentage of revenue expenditure that can be financed from the total revenue of the State

increased from 88 % in 2002-03 to 99.8% in 2005-06. A buoyant own tax revenue complemented by the
high devolution of central transfers based on the recommendations of the Twelfth Finance Commission
and lower growth rates of revenue expenditure contributed to this trend. In 2006-07, the state achieved a
revenue surplus situation of nearly 7% for the first time in a decade.
20.

However, the situation has changed in the subsequent years. The revenue surplus, which was

nearly 1 % of GSDP in 2006-07, declined by 0.04 %to 0.24 % in the subsequent years. Similarly, the
primary deficit that achieved a surplus in 2006-07, turned negative in the subsequent years. The fiscal
deficit, which was 1.87% in 2006-07, increased to 2.41 percent and 2.91 percent respectively in
subsequent years. The state experienced turbulence in the fiscal situation, which was also attributable to
the overall economic slowdown period in 2008-09.
21.

In theaccounts of 2010-11 and 2011-12, the proportion of revenue surplus in GSDP was 0.42

percent and 0.46 percent and that of fiscal deficit was 2 percent and 2.3 percent respectively. The Debt
Swap Scheme (DSS) and stoppage of plan loans from the centre reduced the interest payment burden
contributing to a change in the debt pattern. The savings in interest payments on outstanding central
loans under the Debt Consolidation and Relief Facility (DCRF) as recommended by the Twelfth
Finance Commission, contributed towards the declining trend in interest payments.
22.

An analysis of States own tax revenue for the last decade in select years is presented below:
(Rs. Crores)
Table-3
States Own Tax Revenue
2004-05

2008-09

2013-14

Sales tax

11,041

21,852

48,737

State excise

2,093

5,753

6,250

Taxes on motor vehicles

1,169

1,801

3,335

Stamps and Registration

1,388

2,931

4,393

11

Land Revenue

34

130

74

Profession tax

180

374

520

Others (including entertainment tax, electricity duty,

348

517

814

16,251

33,358

64,124

etc.
Total Tax Revenue

Note Year-wise States Own Tax Revenues furnished in Annexure-II

23.

The major components of States own non-tax revenue for the last decade in select years are

indicated as under:
(Rs. Crores)
Table-4
States Own Non-Tax Revenue
2004-05

2008-09

2013-14

Interest receipts (excl. contra Int.)

131.26

186.43

737.61

Forestry and Wild Life

121.69

93.22

203.65

Other Rural Development Programmes

186.02

556.82

689.3

Non-Ferrous Mining and Metallurgical Industries

873.53

1,684.98

2,730.56

Education, Sports, Art and Culture

69.14

111.68

1,675.55

Police

50.15

105.36

294.71

191.8

744.61

3,643.93

1,040.94

Contra Interest

1,579.18

3,300.97

7,908.74

Total

3,755.57

9,683.4

15,472.86

Major Irrigation
Others

Note Year-wise States Own Non-Tax Revenues furnished in Annexure-III

24.

The tax and non-tax revenue receipts of the State exhibited different trends during 2002-14 an

upward movement in the revenue receipts during the first half of this period and a fluctuating trends
during the latter half of the period. This differentiation is important since the underlying economic
drivers both at the national as well as international level have been different in these period(s).

12

5.

Economic Trends

25.

The firm foundation for robust economic growth of the State was laid in mid nineteen nineties

and was consolidated during the subsequent years. By 2004, Andhra Pradesh was placed on a trajectory
of high growth momentum. Apart from fiscal consolidation, revival of the economy, the Government
expanded opportunities to its citizens through massive education expansion, expansion of employment
opportunities and substantial investments in infrastructure and development, apart from sustained efforts
to alleviate poverty and empower women and weaker sections. The measures implemented during 19952004 period ensured sustainable all round development of the State.
26.

The proportion of revenue receipts and total budgetary receipts as percentage of GSDP increased

between 2002 and 2007on account of the following factors:


The higher growth rate of states own tax and own non-tax revenue.
Higher economic growth rate.
Benefits of fiscal reform measures initiated during the late 90s specifically in improving
expenditure management, which included:
-

The better maintenance of existing assets in preference to starting new projects;

Completion of on-going projects through critical balancing investments;

Launching new projects and schemes on strict cost-benefit criteria while taking into account
both positive and negative externalities;

Performing a zero-based evaluation of every scheme and phase out ineffective ones;

Base budgeting on a realistic estimate of resources to avoid over-stretched commitments

Emphasizing quality of expenditure and evaluation of programmes on physical performance


indicators in addition to financial ones.

13

It also included inviting private sector participation in the infrastructure sector and framing
growth-enhancing policies.
Higher growth rate of share in central taxes
Simultaneously, empowerment of the States, augmentation of tax (VAT), non-tax revenues and
reforms of State PSUs helped revenue growth
Fiscal deficit and revenue deficit have considerably improved
APs debt / GSDP ratio was well within the set limits

6.

Economic Downturn 2008-14

27.

It is clear from the data that the growth of States own tax revenueshave declined in the first three

years of the eleventh plan period. The overall economic downturn cycle also led to the following:
Components of own tax revenue showed declining growth rates during 2008-10.
Fluctuations in the growth rates of grants-in-aid
Substantial increase in debt and non-debt components of capital receipts in 2007-08.
Fall in growth rate of non-tax revenue and also share in central taxes.
Relatively lower economic growth rate
Revenue receipts as percentage of total receipts started declining from 14.84% during 2007-08 to
12.95% in 2013-14
Increased dependence on borrowings for the plan
GSDP growth fell precipitously from 2008-09 onwards

28.

During 2002-14, while the revenue from state excise was more buoyant on account of increased

per capita liquor consumption, the revenue from sales tax, stamp duty and registration fee,etc., have

14

been on par with the GSDP trends. On the other hand, the motor vehicle tax (MVT) has shown
significant slow down.

29.

The total expenditure from 2004-05 to 2013-14 under Revenue, Capital and Loans and Advances

along with the share in total expenditure is depicted below:


7.

Composition of Total Expenditure

30.

The total expenditure from 2004-05 to 2013-14 under Revenue, Capital and Loans and Advances

along with the share in total expenditure is depicted below:


Table 5

Year

Revenue
Exp.

Capital
outlay

Repayments

2004-05

31307

5414

2005-06

34915

2006-07

(Rs. crores)
Shares in total expenditure
Loans
Revenue Capital
Repayand
Exp.
outlay
ments
Advances
7
8
9
10

Loans
and
Advances
5

Total

7432

1593

45747

68.44

11.84

16.25

3.48

7662

5295

756

48628

71.80

15.76

10.89

1.56

41438

9904

4253

907

56502

73.34

17.53

7.53

1.60

2007-08

53984

12774

4994

2921

74672

72.29

17.11

6.69

3.91

2008-09

61854

10366

4833

3413

80467

76.87

12.88

6.01

4.24

2009-10

63448

13793

6277

1590

74.55

16.21

7.38

1.87

2010-11

78534

11123

7881

3315

77.87

11.03

7.81

3.29

2011-12

90415

13722

6761

4983

78.02

11.84

5.83

4.30

2012-13

102702

15149

7677

3913

79.34

11.70

5.93

3.02

2013-14

110249

15280

7285

3689

85108
10085
4
11588
2
12944
1
13650
4

80.77

11.19

5.34

2.70

8.

Revenue Expenditure

31.

Among the different components the fastest growing items are the interest payments, salaries and

pensions despite the overall number of employees in Government & Public Sector dropping
15

down(Annexure-XIII). Because of the sharp rise on these items investments in infrastructure sector
crowded out.
9.

Capital Expenditure

32.

Capital expenditure includes market borrowings mainly for Irrigation sector, Roads and

Bridges, Housing and capital works for welfare sectors like Education, Health etc. Prudent fiscal
management demands asurplus on revenue account to finance a part of the capital expenditure. The
capital expenditure,especially in our case is mostly financed by borrowings from open market and
externally Aided Projects. Unfortunately, the expenditure efficiency on irrigation, roads and bridges has
been questionable and most of the assets havent taken shape to give back results.
10.

Debt Position

33.

Composition of the total debt is given below


Table-6
Composition of total Debt
Debt outstanding as at the end of the fiscal year
(Rs. crores)

Year

Open
Market
Loans

Loans
From
Central
Govt.

Loans from
Autonomo
us bodies,
etc.

Special
Securitie
s (Small
Savings)
&
Providen
t Fund,
etc.

% To Total Debt

Total

GSDP
7

Debt
outstanding
as % of
GSDP
8

Open
Marke
t
Loans
9

Loans
From
Centra
l
Govt.
10

Loans
from
Autono
mous
bodies,
etc.
11

Special
Securities
(Small
Savings)
&
Provident
Fund, etc.
12

2004-05

19,966

16,129

10,188

20,111

66,393

2,24,713

29.55

30.07

24.29

15.34

30.29

2005-06

21,348

16,045

7,566

25,449

70,408

2,55,941

27.51

30.32

22.79

10.75

36.15

2006-07

23,544

15,169

6,543

30,144

75,400

3,01,035

25.05

31.23

20.12

8.68

39.98

2007-08

29,186

15,126

7,083

31,084

82,479

3,64,813

22.61

35.39

18.34

8.59

37.69

2008-09

38,337

14,734

8,843

31,654

93,568

4,26,765

21.93

40.97

15.75

9.45

33.83

2009-10

51,623

14,808

9,282

33,630

1,09,343

4,76,835

22.93

47.21

13.54

8.49

30.76

2010-11

61,984

15,494

6,786

37,480

1,21,744

5,83,762

20.86

50.91

12.73

5.57

30.79

2011-12

75,090

17,265

5,595

37,695

1,35,646

6,62,592

20.47

55.36

12.73

4.13

27.79

2012-13

91,688

17,302

5,088

39,463

1,53,542

7,54,409

20.35

59.72

11.27

3.31

25.70

2013-14
PreActuals

1,11,374

18,644

3,891

39,941

1,73,849

8,57,364

20.28

64.06

10.72

2.24

22.97

Note - Details of Year-wise Debt Servicing Costs placed in Annexure-IV

16

Year-wise Loans and Advances furnished in Annexure-V

34.

Debt inherited by the State in 1995-06 was Rs 19,000 Cr. The total public debt in 2003-04 was Rs

58,770 Crore, indicating a total borrowing of only Rs 39,000 Crore in nine years. Whereas debt
increased from Rs 66,393 Crores in 2004-05 to Rs 1,73,849 Crores by 2013-14, which meant 1,07,456
Crores were borrowed over nine years. While the per capita debt in 2003-04 was around Rs 7,712, it has
increased three fold to Rs 20,573 in 2013-14. Every citizen of Andhra Pradesh today is paying three
times as much tax per capita, he / she paid in 2003-04 and has thrice as much debt accumulated as he /
she had in 2003-04.
11.

Interest Payments

35.

With the growing debt, interest payments have increased in both absolute terms as well as

percentage to GSDP. As the debt is being deployed for current consumption and to build low yielding
assets the burden of interest is growing much faster than revenue augmentation. In other words, debtservicing costs are eating into an increasingly larger share of new debt raised each year.
12.

Plan Expenditure

36.

The plan size depends on the resources available with the State, Central assistance under the

Gadgil formula and the net borrowings allowed by the Central Government. The composition of the
annual plan outlays for the last ten years is indicated below:
(Rs. Crores)
Table-7
Annual Plan Outlays
2004-05

2008-09

2013-14

Agriculture and allied sectors and Rural Development

1,382

5,665

7,427

Irrigation

3,444

9,017

10,209

Energy

2,096

284

Social Services

3,427

12,322

15,375

Transport

627

2,228

3,049

Others (Industries, General Economic Services etc.)

481

1,383

3,077

11,457

30,618

39,421

Total outlay

Note Details of Expenditure on Salaries & Establishment furnished in Annexure-VI

17

Details of Annual Plan Outlays furnished in Annexure-VII


Details of Pattern of Plan Financing furnished in Annexure-VIII

37.

The growth in plan outlay has been coming down in the recent past. There is a decrease in the

plan outlay during 2013-14 (3.66% over the previous year)


13.

Salient Features on Expenditure Front

38.

The annexure X gives the trends in developmental expenditure. As seen from the data funding

on social welfare infrastructure such as education & health, water supply & sanitation has not been
commensurate. Some of the key issues relating to expenditure trends include the following:

Capital expenditure dropped in the last five years from 3.5% to 1.79%

The expenditure on pensions showed an increasing trend from 2002 onwards

Increase in establishment costs (salaries & pensions), rising interest payments, welfare
commitments, power expenditure characterises recent performance

Fiscal stress is the result of expenditure commitment rising faster than revenue receipts, less than
anticipated returns from major projects in irrigation, power etc., and the increasing debt burden
on the Government

Power subsidy went up from Rs.1696.92 crores during 2005-06 to Rs.6617.36 crores by 2013-14
without any improvement in quality of power supplied or in meeting the demand

Share of expenditure on education, health & family welfare,industry & minerals has not
improved.

14.

Capital expenditure trap

39.

The expenditure, which used to be around 10% on irrigation and flood control, has doubled in

the last decade without any visible results.

Most of the assets are non-performing despite huge

expenditure on this sector. Following table gives the account of monies invested in the last decade on
irrigation front.

18

Irrigation Expenditure

YEAR

40.

(Rs. in Crores)
Expenditure (Plan)

2004-05

3458.86

2005-06

6680.99

2006-07

9153.71

2007-08

12248.70

2008-09

9020.23

2009-10

11759.41

2010-11

9703.66

2011-12

11416.43

2012-13

11075.44

2013-14 (PreActuals)

10210.83

Total Expenditure

94728.26

Notwithstanding the fact that Rs 94,728.26 crores were invested during the past ten years, almost

entirely on major irrigation projects, the total area irrigated by the canal systems has in fact declined
from 22.31 lakh hectares in 2004-05 to 22.16 lakh hectares in 2011-12, an abysmal performance by any
reckoning. Further, the per hectare cost of irrigation has increased exponentially between 2004 and 2014
due to skewed distribution of funds to projects without priority, unacceptably high cost and time
overruns on account of poor project management.
41.

It is rather disconcerting to note that while Rs 10,070.31 crores were spent to irrigate a net area of

41.15 lakh hectares between 1995-96 and 2003-04, an amount of Rs 94,728.26 crores was spent between
2004-05 and 2013-04 to irrigate a net area of 45.67 lakh hectares. It means, effectively, for bringing an
additional area of 4.12 lakh hectares an exhorbitant amount of Rs 94,728.26 crore was spent during the
period 2004-05 to 2013-14.

19

II.
42.

Implications of State Division

Due to the variance in methodology adopted for allocation of revenue receipts and expenditure,

the residuary state of Andhra Pradesh will be facing tremendous fiscal challenges.
43.

The total receipts of revenue including States own revenue, Central taxes devolution, grants and

market borrowings are going to be the same for both Telangana and residuary state of Andhra Pradesh with the entire Hyderabad revenue going to Telangana. However, on the expenditure side, due to the
allocation of debt, salaries, pensions and subsidies based on population ratio, the residuary State of AP
will have more i.e., 58% share, while Telangana will have only 42%.
44.

The result is very high revenue deficit and fiscal deficit for the residuary state of Andhra Pradesh

unprecedented and like never before. There has not been any revenue deficit for the State in the last
decade and fiscal deficit has never crossed 3% of GSDP so far. The residuary State of AP, unfortunately
will have a revenue deficit of 4.84% and a fiscal deficit of 7.18% - if the normal Plan voted by the united
State of AP Legislature is to be implemented reflecting the challenges ahead.
45.

The percapita income of the residuary State of Andhra Pradesh vis--vis Telangana is given

below:
Per Capita Income (Current Prices)
Year

AP

(in Rupees)
Telangana %

2004-05

25959

24409

2005-06

282238.72

28987

18.76

2006-07

32961

33381

15.16

2007-08

39780

20.69

39652

18.79

2008-09

44376

11.55

49114

23.86

2009-10

50515

13.84

51955

5.78

2010-11

58733

16.27

66951

28.86

2011-12

66754

13.66

73930

10.42

2012-13

76041

13.91

83020

12.30

2013-14

85797

12.83

93151

12.20

16.79

20

The percapita income is higher than Telangana during 2004-05but has come down since then.

(Rs. Crores)
Table-8
Revenue Expenditure on Salaries and Pensions as Proportion of States Revenue and
Expenditure (Revenue account)
Expenditure on salaries, wages

*Expenditure on establishment

and pensions as % of

as % of

Own revenue

Total
revenue

Revenue
expenditure

Own
revenue

Total
revenue

Revenue
expenditure

2001-02
66.65
46.53
41.11
12.55
8.31
7.35
2002-03
66.41
46.62
41.15
12.17
8.54
7.54
2003-04
65.47
42.42
38.21
15.17
9.83
8.86
2004-05
60.44
42.07
38.63
14.13
9.83
9.03
2005-06
58.82
39.96
39.10
10.81
7.54
7.53
2006-07
53.61
36.85
39.35
10.58
7.27
7.76
2007-08
51.13
33.86
33.96
10.71
7.09
7.11
2008-09
45.99
31.49
32.01
9.86
6.75
6.86
2009-10
55.25
36.71
37.43
9.29
6.18
6.30
2010-11
59.17
40.80
42.08
8.00
5.52
5.69
2011-12
57.72
40.09
41.48
9.21
6.39
6.62
2012-13
54.93
40.14
40.58
9.47
6.92
7.00
2013-14 Pre57.83
41.57
41.75
9.84
7.08
7.11
Actuals
2014-15
60.91
41.27
41.40
9.52
6.45
6.47
(V/Ac BE)
New AP
73.60
43.47
31.48
10.37
6.06
4.44
2014-15
* Non-salary O&M expenditure ( Non-Plan & Plan)
Note - Details of trends in Developmental Expend. (X-Plan & XI-Plan Periods) furnished in Annexure IX
46.

The percentage of expenditure on salaries and pensions in the new State of Andhra Pradesh will

reach 73% of its own revenues from 58% in the combined State, leaving little scope for developmental
expenditure.

21

47.

Details of Revenue Receipts and Expenditure placed in Annexure-X. The impact of division on

State Finances is brought out in a tabular form, placed below.


Table-9
Indicator

Undivided AP

Andhra Pradesh

Telangana

8.46

5.06
(58.32%

3.62
(41.68%)

8,54,822

4,75,859
(55.7%)

3,78,963
(44.3%)

Per Capita Income (Rs) 201314

88,876

85,797

93,151

States Own Tax Revenues


(Rs. Cr.) 2014-15 Estimates

68,993.44

32,164.19
(46.6%)

36,829.25
(53.4 %)

Non-Tax
Rs. Cr

16,461.2

8,635.98
(52.4%)

7,825.22
(47.5%)

1,61,014

92,461
(57.4%)

68,553
(42.6%)

Debt /GSDP Ratio (2013-14)

18.8

19.4

18.1

Own Tax to GSDP Ratio


(2013-14)

8.05

6.8

9.7

Borrowing Limits 2014-15

29,457

15839.17

13,617.83

Gap in Resources (2014-15


FY)

-14,080

- 18,236

+4,156

Gap in resources June 2014March 2015

-12,136

-15,691

+ 3,555

Population (2014)Cr.
GSDP (Rs. Cr.) 2013-14

Revenue

2014-15

Total Debt 2013-14


(excluding public a/c)

Likely Rev. Deficit for


2014-15

0.05

Likely Fiscal Deficit for


2014-15

-2.59

-4.84
-7.18

N/A
N/A

Note Details of year-wise Fiscal Deficit and Interest Payments furnished in Annexure-XI
Details of Income of Residuary State of A.P. and that of Telangana State given in Annexure-XII

22

48.

As seen from the table, the residuary Andhra Pradesh is at a significant disadvantage vis--vis

Telangana State. First, the GSDP of the AP State is only 55.7 per cent of the combined States GSDP,
and the percapita income of the residuary AP State is much below the Telangana State.More
significantly, the AP States own revenues are far lower than that of Telangana; Andhra Pradesh State
with 58.32 per cent of the population earns only 46.6 per cent of the total revenues of the combined
State. Further, Andhra Pradesh has much higher debt burden compared to Telangana, as population
ratio was the sole criterion for apportionment of debt between the two States. The Debt/GSDP ratio of
AP is 19.4, compared to 18.1 of Telangana. The borrowing limit of AP is only Rs 2,222 crores more
than that of Telangana.
49.

The resource gap for the current year is estimated at Rs 18,236 crores, which translates to about

4.84 per cent revenue deficit and 7.18 fiscal deficit. The resource gap for the ten-month period of the
current fiscal year is around Rs 15,691 crores, compared to Rs 3,555 crores surplus of Telangana. The
current context has positioned Andhra Pradesh in a fiscally precarious position.

Revenue receipts of residuary State of Andhra Pradesh

Details

Rs. In crores
Table 10
Residuary State of Andhra Pradesh
2014-15
2014-15
Estimates
(for ten months)

1. Own Tax Revenue


Sales Tax
State Excise
Motor Vehicles Tax
Stamps &Registration
Other Taxes
Total Own Tax Revenue

24,739

20,625

3,730

3,458

971

799

2,061

1,708

663

558

32,164

27,148

8,836

7,940

116

103

1014

856

Growth
2. Non-tax Revenue
Forests
Mines & Minerals

23

R.D. Cess
Interest Receipts (incl.

338

258

5049

4856

(4872)

(4686)

2319

1867

29001

25231

15705

13462

4132

4132

9164

7637

70001

60319

Contra int.)

Others
3. Receipts from GoI
Share of Central Taxes
FC Grants
Central Assistance

(incl.CSS)

Total Receipts

Non-Plan Expenditure 2014-15 of residuary State of AP


The total Non-plan expenditure estimated for 2014-15 is as follows

(Rs. Crores)
Table - 11
Details

Residuary State of Andhra Pradesh


2014-15

2014-15

Estimates

(for ten months)

Salaries

25989

21127

Pensions

9644

7233

Interest Payments

9802

9267

a) Power Subsidy

2626

2188

b) Servicing of Power

875

875

Rice subsidy

2030

1637

Natural Calamities Expenditure

1811

1744

Committed expenditure transferred from Plan

4348

4348

Power Sector:

Bonds

to Non-plan like salaries etc. of SERP and


RGUKT, industrial incentives etc.

24

Subsidies and other Grants

3048

2540

Maintenance Works

1077

897

Non-salary

2120

1766

Others (including contra interest of Rs.8344

14989

14036

Total Revenue Expr.

78359

67658

Loans and Advances

786

786

79145

68444

crores

and

adjustment

dues

of

APSEB/GENCO etc.)

Total Non-Plan Expr.

After finalization of estimates of non-plan expenditure, the resources available for plan are shown below
(Rs. Crores)
Table-12
Resource availability

Details
1. State Government's Own Funds

(a to c)

Un-divided State

Andhra

10 Months

Estimates 2014-

Pradesh

15

2014-15
-15,787

-17,301

-14,755

-14,080

-18,237

-15,691

-1,364

1,136

1,136

-343

-200

-200

2. Net Borrowings

29,457

15,837

12,195

3. Central Assistance

17,281

9,879

8,352

16,057

9,164

7,637

1,224

715

715

30,952

8,416

5,791

a) BCR - Balance from Current


Revenues
b) MCR - Miscellaneous Capital
Receipts
c) Adjustment of Opening Balance

a) ACA & CSS


b) Plan Grants from GOI (13th FC)
Aggregate Resources available for Annual Plan 2014-15
(1+2+3)

25

50.

As against the available resources for the Annual Plan, the requirement for the major on-going

plan schemes under State Plan against Revenue and Capital works /schemes as per vote on budget 201415 are as follows:
(Rs. in crores)
Table-13
Revenue Expenditure (Plan)
Details

2014-15

2014-15

Estimates

Estimates (Andhra

(Un-divided State)

Pradesh)

Scholarships

1586

862

Reimbursement of Tuition Fee

2626

1469

925

537

1360

803

VaddileniRunalu

650

453

SFC Grants to PR Bodies

300

182

Assistance to SERP

500

500

3769

1670

18820

10740

30536

17216

ArogyaSree
Housing Programme

Externally Aided Projects


Centrally Assisted State Schemes (incl. matching
State Share)
Total

(Rs. Crores)
Table-14
Capital Expenditure (Plan)
2014-15
Estimates
(Un-divided State)

Details

Irrigation

2014-15
Estimates (Andhra
Pradesh)

13215

7716

Roads & Bridges

4243

2379

Housing

1001

591

MA&UD & PR

3224

192

26

Capital works for welfare Depts.

1454

822

Home

209

112

Others

2199

1660

Total 2.

25545

13472

Grand Total (1+2)

56081

30688

51.

As seen from the above, it is observed that the available resources of Rs.8416 crores in respect of

Residuary Andhra Pradesh available for Plan Budget is not even sufficient to meet the Central Assisted
Schemes including matching State Share of Rs.10740 crores.
52.

With the kind of Revenue deficit (i.e., 18237 crores for 2014-15 and Rs.15691 crores for 10 month

period ahead) the available resources left for plan are only Rs.8,416 crores for entire year and Rs.5,791
crores for 10 month period. Whereas, united A.P. assembly voted a Plan of Rs.30,688 crores. Further,
the Cabinet recently hiked social welfare pensions resulting in additional requirement of funds by
another Rs.2,048 crores.
53.

Against the requirement of more than Rs.32,000 crores for the plan, as given in the table,

available resource are only Rs.5,791 crores. It means approximately Rs.26,000 crores are required
additionally over and above the limits approved by Government of India (GoI) for the current year
borrowing. This would require relaxation from the limits imposed by FRBM Act.
54.

So far, Market borrowings are strictly used for capital expenditure. A stage has come now,

wherein, we will have to borrow significant amount for revenue expenditure without any asset getting
added.
55.

A continuation of this trend may lead to fiscal imbalances, which may cause irreparable damage

to the economy and adversely affect growth and development of the State. Immediate corrective action
is required and the Government has to decide on an appropriate program to ensure that the fiscal
objectives of the state are achieved in a reasonably short period.
Conclusion
56.

This paper is mainly intended to inform the public about the factual position of state finances so

as to generate an informed debate on various aspects of the states fiscal health and also to educate the

27

public on the adverse consequences of inaction and the necessity for adopting hard and difficult
measures to restore the fiscal health. The numerous problems affecting the state economy have to be
analysed scrupulously and the required corrective actions need to be implemented dispassionately. The
Government invites constructive suggestions and valuable advice from different groups in the society
and political parties in the state. This would help the Government in its endeavour to adopt proper
corrective action in a timely manner so that it can quickly bring fiscal discipline and financial stability.
57.

The Government is committed to rectify the fiscal imbalances that have emerged in the past few

years. The task ahead is very arduous. Government may be left with difficult and painful options.
Government seeks the cooperation and support of the people in its endeavour to move towards the
course of fiscal correction.
58.

Government will necessarily have to play a major role in implementing reforms with greater

thrust in parallel - so as to attract private initiative since it is equally vital for supplementing
governments efforts. Collectively, it should be possible to shift Andhra Pradesh to a higher growth
trajectory - whereby it not only surpasses the national averages in economic performance but also
achieves the goals enshrined in the Vision 2020.
59.

The statement of above factual scenario of the State finances is not in anyway meant to abdicate

our responsibility or go back on welfare and development commitments. Though the State is reeling
under the twin burden of decade long misgovernance and the State reorganisation, it will leave no stone
unturned in exploring the possibilities of mobilising resources required for sustainable development of
the State through innovative means and launch programmes and activities to make the economy boom
and keep the State on a sustained growth trajectory. All citizens are encouraged to become active
stakeholders in revitalising the economy and securing all round development.

****

28

Annexure-I

STRUCTURE OF STATE RECEIPTS

1
Revenue Receipts

2004-05
Actuals

2005-06
Actuals

2006-07
Actuals

2007-08
Actuals

2008-09
Actuals

2009-10
Actuals

2010-11
Actuals

2011-12
Actuals

2012-13
Actuals

Rs in crores
2013-14
Pre-Actuals

10

11

A. States own revenue


i. Tax
ii. Non-Tax
Revenue flow from
B centre
i. Tax devolution
ii. Grants
Total Revenue
C Receipts (A+B)
Capital Receipts

20006.47
16250.91
3755.57

23897.82
19206.46
4691.37

30413.03
23925.19
6487.83

35857.58
28793.44
7064.13

43041.25
33357.85
9683.40

42978.93
35175.71
7803.22

55859.28
45139.55
10719.73

64977.75
53283.41
11694.34

75874.19
59875.05
15999.14

79596.38
64123.53
15472.86

8743.03
6062.10
2680.92

10953.38
6951.82
4001.56

13832.45
8867.01
4965.44

18284.97
11184.25
7100.72

19817.20
11801.94
8015.26

21699.42
12141.72
9557.70

25137.03
15236.75
9900.28

28575.94
17751.15
10824.79

27956.09
20270.77
7685.32

31122.45
22131.89
8990.56

28749.50

34851.20

44245.47

54142.55

62858.45

64678.35

80996.30

93553.69

103830.28

110718.83

D Loans from Centre

1840.89

522.31

314.57

908.99

396.90

1568.58

2244.06

2719.01

1182.98

1342.29

E Market Borrowings

3317.76

1956.37

2725.86

6650.00

10933.57

15383.10

12000.00

15500.00

20000.00

22411.64

F Deposits (net)

6225.77

9249.59

5153.00

2723.58

1812.49

844.51

699.43

3351.22

909.21

378.78

G Loans and Advances


H Other Loans

1372.98
4674.11

182.44
1492.04

471.34
1509.79

190.95
3573.45

369.77
4022.18

142.91
2801.78

172.61
4478.42

164.92
1230.62

425.77
2127.71

574.94
1538.20

1889.32

6557.71

12063.87

20604.68

17534.91

20740.88

19594.51

22965.76

24645.67

26245.85

I Other Receipts
Total capital receipts
J (D to I)

17431.51

13402.75

Annexure-II

STATES OWN TAX REVENUE


2004-05
Actuals
1

1 Sales tax

Stamps and
4 Registration
5 Land Revenue
6 Profession tax

23.01

14.85

8.18

23.28

19.78

16.63

19.70

5752.61

5848.59

8264.67

9612.36

9129.41

6250.26

28.28

28.01

17.58

42.37

1.67

41.31

16.31

-5.02

-31.54

1355.74

1364.74

1603.80

1800.62

1995.30

2626.75

2986.41

3356.60

3335.18

16.01

0.66

17.52

12.27

10.81

31.65

13.69

12.40

-0.64

2013.45

2865.38

3086.06

2930.99

2638.63

3833.57

4385.25

5115.24

4393.18

45.07

42.31

7.70

-5.02

-9.97

45.29

14.39

16.65

-14.12

68.75

113.50

144.39

130.35

221.56

170.74

140.56

61.78

73.62

104.66

65.10

27.21

-9.72

69.98

-22.94

-17.68

-56.05

19.18

226.67

311.75

355.54

374.35

430.36

490.33

539.90

580.01

519.95

26.06

37.53

14.05

5.29

14.96

13.94

10.11

7.43

-10.36

315.66

366.11

536.48

517.27

401.04

608.64

708.92

917.34

813.93

-9.21

15.98

46.53

-3.58

-22.47

51.77

16.48

29.40

-11.27

19206.46
18.19

23925.19
24.57

28793.44
20.35

33357.85
15.85

35175.71
5.45

45139.55
28.33

53283.41
18.04

59875.05
12.37

64123.53
7.10

179.81

% increase over
pre. Year

Others
(including
entertainment
tax, electricty
duty, etc.

347.70

% increase over
pre. Year

Total Tax
Revenue

16250.91
% increase over pre. Year

10
40714.67

Rs in crores
2013-14
PreActuals

4040.69

33.59

9
34910.01

2012-13
Actuals

23.33

% increase over
pre. Year

8
29144.85

2011-12
Actuals

3436.63

1387.91

7
23640.22

2010-11
Actuals

13.60

% increase over
pre. Year

6
21851.66

2009-10
Actuals

2684.57

1168.64

5
19026.49

2008-09
Actuals

2092.67

% increase over
pre. Year

4
15467.08

2007-08
Actuals

3
12541.61

% increase over
pre. Year

Taxes on
3 motor vehicles

2006-07
Actuals

2
11040.60

% increase over
pre. Year

2 State excise

2005-06
Actuals

11
48737.41

Annexure-III

STATES OWN NON-TAX REVENUE

Interest receipts
1 (excl. contra Int.)
Forestry and Wild
2 Life
Other Rural
Development
3 Programmes
Non-Ferrous
Mining and
Metallurgical
4 Industries
Education, Sports,
5 Art and Culture
6 Police
7 Major Irrigation
8 Others
9 Contra Interest
Total

2004-05
Actuals

2005-06
Actuals

2006-07
Actuals

2007-08
Actuals

2008-09
Actuals

2009-10
Actuals

2010-11
Actuals

2011-12
Actuals

2012-13
Actuals

Rs in crores
2013-14
Pre- Actuals

10

11

131.26

101.88

217.25

231.64

186.43

202.90

191.30

340.90

1765.58

737.61

121.69

137.93

87.11

90.92

93.22

103.11

139.06

149.22

168.78

203.65

186.02

187.66

230.70

296.61

556.82

563.48

535.34

716.92

703.17

689.30

873.53

1062.57

1321.25

1597.56

1684.98

1887.26

2064.86

2336.74

2771.04

2730.56

69.14
50.15

69.35
62.94

139.55
79.13

61.35
99.83

111.68
105.36

55.09
130.09

237.95
170.99

675.02
246.01

1195.77
261.91

1675.55
294.71

0.00
744.61
1579.18

0.00
1131.41
1937.64

0.00
2398.92
2013.92

0.00
1392.51
3293.70

0.00
3643.93
3300.97

0.00
212.66
4648.62

0.00
1797.24
5582.99

56.13
1235.48
5937.92

122.03
1150.88
7859.96

191.80
1040.94
7908.74

3755.57

4691.37

6487.83

7064.13

9683.40

7803.22

10719.73

11694.34

15999.14

15472.86

Annexure-IV

Debt servicing costs

Year
1

Net
Gross Loans Borrowings
2
3

Debt Servicing
Principal
Interest
4
5

Total
6

Debt
Service as
% of
Gross
Loans
7

State's
Own
Revenue
8

(Rs. in crores)
Interest
payments
as % of
Interest
states own payments as
revenue % of GSDP
9
10

2004-05

17393.20

12041.07

5352.13

7091.41

12443.54

71.54

20006.47

35.45

3.16

2005-06

9923.26

4621.02

5302.24

7008.1

12310.34

124.06

23897.82

29.33

2.74

2006-07

10484.42

6204.07

4280.35

7280.30

11560.65

110.27

30413.03

23.94

2.42

2007-08

13501.87

8031.70

5470.17

7588.72

13058.89

96.72

35857.58

21.16

2.08

2008-09

17703.31

11877.66

5825.65

8057.12

13882.77

78.42

43041.25

18.72

1.89

2009-10

22136.32

15932.76

6203.56

8913.59

15117.15

68.29

42978.93

20.74

1.87

2010-11

21852.27

14000.99

7851.28

9674.74

17526.02

80.20

55859.28

17.32

1.69

2011-12

22826.04

14857.18

7968.86

10560.77

18529.63

81.18

64977.75

16.25

1.61

2012-13

26890.46

17969.88

8920.58

11661.86

20582.44

76.54

75874.19

15.37

1.58

2013-14
Pre - Actuals

28965.41

21835.74

7129.67

12910.64

20040.31

69.19

79596.38

16.22

1.53

Annexure-V

LOANS AND ADVANCES BY THE STATE GOVERNMENT


(Rs. in Crores)

Year

Opening
Balance

Amount
advanced
during the
year

Amount
repaid
during the
year

Net Loans

Interest
Received

2004-05

9418.57

1593.14

1372.98

220.16

55.41

2005-06

9638.73

756.49

182.44

574.05

9.18

2006-07

10212.78

906.69

471.34

435.35

4.22

2007-08

10648.13

2920.72

190.95

2729.77

9.95

2008-09

13377.9

3413.37

369.77

3043.6

3.57

2009-10

16421.5

1589.82

142.91

1446.91

2.57

2010-11

17868.41

3314.93

172.61

3142.32

22.99

2011-12

21010.73

4983.20

164.92

4818.28

75.04

2012-13

25829.01

3912.86

425.77

3487.09

106.56

2013-14
Pre - Actuals

29316.10

3689.20

574.94

3114.26

141.89

Annexure-VI
EXPENDITURE ON SALARIES AND ESTABLISHMENT
(Rs. In Crores)

Year

Pay and
Allowances and
Travelling
Allowance

Wages

Grants in-aid
for Salaries

Pensions

Total
Expenditure
including
Pensions
(2 to 5)

Establishment cost as % of
States Own Total Revenue
Revenue
Receipts

2004-05

5378.17

25.35

3692.48

3016.78

12112.78

60.54

42.13

2005-06

8597.40

21.03

1766.05

3196.95

13581.43

56.83

38.97

2006-07

9973.41

23.59

2144.60

4150.49

16292.09

53.57

36.82

2007-08

10945.65

33.78

2256.29

5092.13

18327.85

51.11

33.85

2008-09

12234.67

30.92

2264.68

5518.46

20048.73

46.58

31.90

2009-10

15439.24

36.16

2298.35

6339.02

24112.77

56.10

37.28

2010-11

20905.04

277.48

2809.67

9609.42

33601.61

60.15

41.49

2011-12

23489.61

39.68

3226.93

11109.85

37866.07

58.28

40.48

2012-13

26134.97

40.64

3819.61

12089.30

42084.52

55.47

40.53

2013-14
Pre - Actuals

28790.12

51.77

3990.54

13682.31

46514.74

58.44

42.01

Annexure-VII

Annual Plan Outlays


Sectors

2004-05

2005-06
4

2006-07
5

2007-08
6

2008-09
7

2009-10
8

2010-11
9

2011-12
10

(Rs. in Crores)
2013-14
2012-13
PreActuals
11

12

Agriculture and allied sectors and


1 Rural Development

1381.62

1449.86

1972.47

2 Irrigation

3444.09

6672.05

9147.55 12234.83

3 Energy

2095.93

56.83

37.45

4 Social Services

3426.73

3387.79

4548.65

8159.18 12322.11

9497.98 12478.64 14772.00 15697.48 15374.75

5 Transport

626.99

1113.08

1322.62

1689.05

2228.31

2101.72

1948.71

2015.86

2373.11

3048.78

Others(Industries,General Economic
6 Services etc)

481.18

759.80

1178.24

2618.05

1382.67

1350.09

1015.00

1535.59

2332.18

2403.12

Total outlay

2442.07

27.62

5664.90

4671.54

9017.10 11757.58
2.59

12.06

5925.21

8028.38

8339.20

7426.54

9701.13 11414.65 11073.61 10208.90


507.67

1498.57

405.46

284.16

11456.54 13439.41 18206.98 27170.80 30617.68 29390.97 31576.36 39265.05 40221.04 38746.25

Annexure-VIII

PATTERN OF PLAN FINANCING


(Rs. in Crores)

Sl.
1

Item
2

1 Balance from Current Revenues

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 PreActuals
3
4
5
6
7
8
9
10
11
12
1860.92

3988.05

8517.90

8401.92 13829.00 10750.79 16163.33 19475.47 19717.61

18651.02

1290.88

1955.61

2725.86

6650.00 10933.57 15383.11 12000.00 15500.00 20000.00

22411.64

5 Small Savings Loans

3476.96

4914.03

4143.77

387.44

323.20

1531.19

3005.75

6 State Provident Fund

347.23

481.39

719.02

756.58

583.28

960.99

1602.81

7 Miscellaneous Capital Receipts

3797.57

3674.23

2216.32

7938.44

1463.33

124.63

8 Negotiated Loans

2506.23

994.34

1010.43

1425.76

1360.44

9 Power Bonds

1080.60

285.60

250.00

2070.68

243.61

506.89

309.49

894.00

3247.52

1448.74

2372.37

7.15

6.50

-457.22

2 Contribution to Public Enterprises


3 Market Borrowings
4 Development Bonds
718.00

636.27

1220.36

3579.77

3667.94

-855.74

1821.30

-2394.82

-2547.37

1123.70

1083.61

1230.62

1409.71

901.93

394.51

865.01

2243.93

2719.01

1182.98

1342.29

3792.42

4039.44

4254.38

3318.59

3956.81

3222.60

2816.47

154.50

148.00

191.66

199.16

298.83

758.62

298.76

426.20

375.05

191.93

-74.93

80.06

-318.18

263.94

-639.05

966.62

-468.30

-6994.97

-5351.02

-4399.13

-5197.18

-5169.85

-5469.53

-7663.26

-6761.00 -10066.94

-9864.28

1303.69

200.00

1747.76

1447.24

11466.56 13479.41 18212.46 27193.13 30632.28 29405.25 31632.70 39282.14 40382.05

39421.05

10 Loan portion of EAP


11 Central Assistance
12 FC Grants
13 Adjustment of Opening Balance
14 Repayments
15 Water Resource Development Corpn.

2360.03

170.91

16 Withdrawal from Reserves


17 ARM
18 Deposits and Other Funds Net
19 Total Resources

Annexure-IX

Trends in Developmental Expenditure* X Plan and XI Plan Periods


(As % of Total Expenditure)
Developmental Exp*

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2002-07

2007-12 2002-12 2012-13

2013-14
Pre-Actuals

Social Services

31.3

29.7

31

30.8

37.4

35.3

38.1

38.2

31.1

36.3

34.6

38.3

35.9

Education, Sports, Art and Culture

12.3

12.4

11.7

9.7

9.6

10.8

13.5

13.8

12.4

11.8

12

14.1

14.5

Health and Family Welfare

3.9

3.7

3.7

4.1

4.3

4.6

4.7

4.3

4.2

4.6

4.6

Water Supply, Sanitation, Housing and Urban Development


6.2

5.6

6.2

8.9

11.2

6.8

6.7

5.7

5.9

7.6

7.1

5.3

2.3

Informationa and Publicity

0.1

0.1

0.1

0.2

0.4

0.3

0.1

0.3

0.1

0.2

0.2

0.2

0.2

Welfare of SC ST and other BCs

3.3

3.8

3.8

4.5

4.3

5.4

5.7

3.8

4.8

4.5

6.5

6.0

Labour and Labour Welfare

0.2

0.2

0.2

0.2

0.3

0.2

0.2

0.2

0.2

0.2

0.2

0.2

0.2

Social Welfare and Nutrition

4.4

4.1

5.3

4.3

7.5

8.5

7.5

7.7

4.4

7.2

6.3

7.5

7.9

Others

0.1

0.1

0.1

0.1

0.1

0.1

0.2

33.6

38.6

38.6

42.7

37.3

37.4

32.8

34.1

35.5

36.4

36.1

35.8

33.1

B Economic Services
Agriculture and Allied Activities

4.5

2.9

2.9

3.1

3.2

3.3

3.9

3.3

3.7

3.6

3.9

3.1

Rural Development

4.7

4.6

4.7

4.3

4.1

3.1

3.9

3.4

4.7

3.7

3.0

3.5

Irrigation and Flood Control

13.7

20.3

21.8

22.6

16.7

21.2

16.8

16.2

15.9

18.4

17.6

16.5

14.4

Energy

5.7

4.2

3.1

6.6

4.9

4.1

4.6

5.4

5.5

5.1

5.2

5.7

5.9

Industry and Minerals

0.8

0.6

0.6

0.5

0.6

0.5

0.9

0.6

0.7

0.8

0.7

Transport

3.2

4.4

3.8

3.3

2.4

2.9

3.9

3.2

3.4

3.8

3.8

General Economic Services

0.8

1.4

1.5

1.4

2.1

1.3

1.8

1.3

1.7

1.6

2.1

1.7

Total (A+B)

64.9

68.3

69.6

73.5

74.7

72.6

71

72.3

66.6

72.7

70.8

74.1

69.0

TOTAL EXP*

100

100

100

100

100

100

100

100

100

100

100

100

100

* includes Revenue, Capital and Loan Accounts

Annexure-X

Revenue receipts and expenditure


(Rs. crores)
Year

Revenue Receipts

Revenue
Expenditure

2004-05

28749.50

31307.33

-2557.83

2005-06

34851.19

34915.30

-64.11

2006-07

44245.47

41438.40

2807.07

2007-08

54142.55

53983.56

158.99

2008-09

62858.45

61854.22

1004.23

2009-10

64678.35

63447.93

1230.42

2010-11

80996.30

78534.26

2462.04

2011-12

93553.69

90415.36

3138.33

2012-13

103830.28

102702.39

1127.89

2013-14 - Pre Actuals

110718.82

110248.78

470.04

Surplus/Deficit

Annexure-XI

Fiscal deficit and Interest Payments


Year

Total
Expenditure

Interest
Payments

Fiscal Deficit

GSDP

Fiscal
Deficit %
to GSDP

Revenue
Surplus/
Deficit

(Rs. crores)
Revenue
Deficit % to
GSDP

2004-05

45747

7091.41

8192.23

224713

3.65

-2557.83

-1.14

2005-06

48628

7008.1

8299.85

255941

3.24

-64.11

-0.03

2006-07

56502

7280.30

5642.96

301035

1.87

2807.07

0.93

2007-08

74672

7588.72

8787.00

364813

2.41

158.99

0.04

2008-09

80467

8057.12

12405.83

426765

2.91

1004.23

0.24

2009-10

85108

8913.59

14009.54

476835

2.94

1230.42

0.26

2010-11

100854

9674.74

11803.47

583762

2.02

2462.04

0.42

2011-12

115882

10560.77

15401.93

662592

2.32

3138.33

0.47

2012-13

129441

11661.86

17508.02

754409

2.32

1127.89

0.15

2013-14 Pre-Actuals

136504

12910.64

17915.77

857364

2.09

470.04

0.05