Andhra Pradesh finance minister Y Ramakrishnudu presented a tax-free budget for 2014-15 in the state legislative assembly on Wednesday. This includes a plan expenditure of R26,673 crore and a non-plan outlay of R85,151 crore. The estimated revenue deficit is R6,064 crore and fiscal deficit is estimated at R12,064 crore.
According to the minister, the fiscal deficit works out to 2.30% of GSDP whereas the revenue deficit works out to 1.16%. The budget estimates include the receipts and expenditure of two months relating to undivided state and the anticipated additional assistance of R14,500 crore from Centre in the context of state reorganisation. If these are excluded, the revenue deficit of the residuary state of AP will be R25,574 crore and the fiscal deficit will be R37,910 crore working out to 4.84% and 7.18% of GSDP, respectively. "From a revenue surplus budget in the united State, Andhra Pradesh is now facing deficits on revenue and fiscal fronts due to the manner in which bifurcation of the state happened," he said. The state government has allotted R5,000 crore for waiver of farm loans in the budget. “There has been distress in the community due to natural calamities, rising cost of inputs, lack of remunerative prices and high labour costs. The debt relief to farmers would impose a huge burden, however we will not leave any stone unturned to raise resources,'' the minister said.