AP Finances Under Severe Stress, Says Keshav
He added that Andhra Pradesh’s position is weaker than the national average
Kurnool: The financial position of Andhra Pradesh is under severe stress, with a major share of revenue being spent on salaries and pensions, finance minister Payyavula Keshav said on Saturday.
Addressing officials at a budget outreach programme in Nandyal, he said nearly 99 per cent of the state’s revenue was being utilised for salaries and pensions. The expenditure stood at about 88 per cent till February but rose to 99 per cent after March figures were included.
He noted that expenditure had reached 100 per cent and 110 per cent in the 2019–20 and 2020–21 financial years respectively. HR-related expenses, once around 21 per cent, have increased significantly, adding pressure on state finances.
The minister said the government is also required to allocate funds for essential sectors such as healthcare, education and the mid-day meal scheme. He added that Andhra Pradesh’s position is weaker than the national average, while neighbouring Telangana spends about 47 per cent on such expenses.
Pending dues to employees stand at around `30,000 crore. The government released `6,000 crore last March and `7,000 crore this year, he said, adding that priority would be given to pension payments.
He also said reforms have been introduced in municipal administration by delegating fund-release powers to the municipal department to avoid delays.
