AP government had allotted Rs 78,636.33 crore in the Budget for non-Plan expenditure.
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Hyderabad: To reduce the revenue gap at the end of the current financial year, the Andhra Pradesh government has decided that it will not give any new social security pensions nor pay Pay Revision Commission arrears to the employees. It will also cut down on subsidies. There also appears to be a freeze on farm loan waiver payouts.
The government had allotted Rs 78,636.33 crore in the Budget for non-Plan expenditure, which it wants to bring down to around Rs 70,500 crore. The cuts are aimed at facilitating this.
In the Budget the government had projected a bigger sum for employees' salaries. The government had allotted Rs 26,730.91 crore in the Budget keeping in view the PRC implementation. At the end of the current financial year, the total expenditure on salaries will be about Rs 23,542.68 crore. This marks a saving of about Rs 3,000 crore.
The government had allotted Rs 5,916 crore for subsidies in the power sector which will be reduced to Rs 5,615.68 crore, a saving of Rs 300 crore.
It had allotted Rs 4,300 crore for waiver of farm loans this year but till today the government has not paid out a single rupee for the purpose. If the government does not spend this amount, this will help to reduce the revenue gap.
While reducing the non-Plan expenditure, the government wants to show more on the Plan expenditure side.
In the Budget, the government had allotted Rs 34,412 crore for Plan expenditure, which has been projected to go up to Rs 44,154 at the end of the financial year.
This it did by including some items listed as non-Plan expenditure.
Repayment of borrowings, waiver of farm loans and others have been listed under Plan expenditure.
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( Source : deccan chronicle )
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