The state govt has deposited Rs 2,500 crore in the Central government treasury
Representational image
Hyderabad: The AP government is making money thanks to some smart investment moves. Funds of hundreds of crores are released by the Centre and usually deposited in the state government’s account, for which the RBI pays 5 per cent interest. AP government is now depositing the funds in the Central government’s treasury, for which the RBI pays 7.5 per cent interest. The state government has deposited Rs 2,500 crore in the Central government treasury, earning an extra 2.5 per cent.
AP government finance officials said that only a few states are utilising this facility. Meanwhile, the state government has taken Rs 1,500 crore advance from the RBI. For this, it is paying 6.25 per cent interest to the RBI. Thus, it is actually earning an extra 1.25 per cent despite the advance. Officials said that this way the state will make Rs 10 crore per year. They added that the government need not pay any income tax on this revenue.
Meanwhile, officials expressed satisfaction on the state’s own tax and non tax revenues in the last three months. The state earned Rs 6,652 crore through commercial tax, Rs 478 crore from transport department, Rs 780 crore through stamps and registrations, Rs 513 crore from excise department and Rs 260 crore from the mining department in last three months.
It has also earned Rs 951 crore through non tax revenue. Compared to last June, the state government has earned Rs 1200 crore more. In June 2014, the state government had earned Rs 2446 crore as its own tax revenue, which increased to Rs 3600 crore in June 2015. At present Rs 600 crore worth bills are pending with the state government and officials said there were no financial problems to pay these bills.
( Source : deccan chronicle )
Next Story
