Hyderabad: The central government is pooh poohing the state government on release of outstanding arrears of revenue deficit for the financial year 2014-15.
The Union finance ministry dashed a letter to the state government asking about the expenditure on subsidies given in 2014-15.
The Centre asked the details of what new subsidy schemed implemented and what old subsidy schemes continued by the state government. The state government has asked the Centre to sanction Rs 1,000 crore out of the outstanding arrears of Rs 13,300 crore from the 2015-16 financial year and to sanction balance arrears in the 2016-17 financial year.
The Centre has sanctioned Rs 500 crore at the end of the previous financial year. Two days ago, the Union finance ministry officials have sent a letter to the state government asking the details of subsidy expenditure in 2014-15 financial year. They said they will consider releasing another Rs 500 crore after receiving the details.
Sources in the AP finance department said they have submitted details whatever asked by the Union finance ministry. In the reply, the state government said it did not introduced any new subsidy schemes but continued the old schemes of 2014-15 financial year.
The state government said they had spent subsidies on power, public distribution, LPG (Deepam scheme), social security pensions and debt redemption schemes. The state government clarified that it has introduced a scheme for farmers. It said it is not related to waiver of farm loans but a farmer’s debt redemption scheme. At the same time, the state government said in public distribution system the expenditure was not subsidy but was a food security grant.
According to a decision taken in the recent Cabinet meeting, the AP finance department officials are preparing a letter to send it to Prime Minister Narendra Modi requesting him to sanction outstanding arrears of revenue deficit for the year 2014-15.
Quoting Accountant-General estimation of revenue deficit for the year 2014-15, the state government told the central government that the total revenue deficit in the year 2014-15 was Rs 16,200 crore and the Centre has so far given Rs 2,800 crore.
