Centre takes serious note of state spending

Jul 16, 2012 |

Hyderabad

Tags:

Andhra Pradesh

The increasing revenue expenditure by the state government in the first quarter of the financial year itself is a cause for serious concern.

The state government has spent half of the loans it had raised so far on revenue expenditure leaving little scope for asset building in the form of capital expenditure.

The Centre has taken a serious view of the state failing to utilise its borrowings in an optimal way. Sources said the Centre has cut down the borrowings for the second quarter of the financial year.
The state, which borrowed Rs 4,500 crore in the first quarter, has sought the Centre’s permission to raise the same amount for the second quarters also. The Centre, however, has permitted borrowings of only Rs 1,900 crore.

Sources say the government has so far borrowed Rs 6,000 crore in the first quarter out of the budgetary provision of Rs 19,000 crore.

A recent review by finance minister Anam Ramanaryana Reddy revealed that Rs 3,000 crore has gone towards revenue expenditure which mainly deals with establishment costs.

On the other hand, the government has spent about Rs 2,000 crore on irrigation projects, which form a major component of capital expenditure, in the first quarter, although it has a budgetary allocation of Rs 15,000 crore for the entire year.

Post new comment

<form action="/comment/reply/171513" accept-charset="UTF-8" method="post" id="comment-form"> <div><div class="form-item" id="edit-name-wrapper"> <label for="edit-name">Your name: <span class="form-required" title="This field is required.">*</span></label> <input type="text" maxlength="60" name="name" id="edit-name" size="30" value="Reader" class="form-text required" /> </div> <div class="form-item" id="edit-mail-wrapper"> <label for="edit-mail">E-Mail Address: <span class="form-required" title="This field is required.">*</span></label> <input type="text" maxlength="64" name="mail" id="edit-mail" size="30" value="" class="form-text required" /> <div class="description">The content of this field is kept private and will not be shown publicly.</div> </div> <div class="form-item" id="edit-comment-wrapper"> <label for="edit-comment">Comment: <span class="form-required" title="This field is required.">*</span></label> <textarea cols="60" rows="15" name="comment" id="edit-comment" class="form-textarea resizable required"></textarea> </div> <fieldset class=" collapsible collapsed"><legend>Input format</legend><div class="form-item" id="edit-format-1-wrapper"> <label class="option" for="edit-format-1"><input type="radio" id="edit-format-1" name="format" value="1" class="form-radio" /> Filtered HTML</label> <div class="description"><ul class="tips"><li>Web page addresses and e-mail addresses turn into links automatically.</li><li>Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd></li><li>Lines and paragraphs break automatically.</li></ul></div> </div> <div class="form-item" id="edit-format-2-wrapper"> <label class="option" for="edit-format-2"><input type="radio" id="edit-format-2" name="format" value="2" checked="checked" class="form-radio" /> Full HTML</label> <div class="description"><ul class="tips"><li>Web page addresses and e-mail addresses turn into links automatically.</li><li>Lines and paragraphs break automatically.</li></ul></div> </div> </fieldset> <input type="hidden" name="form_build_id" id="form-ca0bbec11418589b9e2deefd31d3440c" value="form-ca0bbec11418589b9e2deefd31d3440c" /> <input type="hidden" name="form_id" id="edit-comment-form" value="comment_form" /> <fieldset class="captcha"><legend>CAPTCHA</legend><div class="description">This question is for testing whether you are a human visitor and to prevent automated spam submissions.</div><input type="hidden" name="captcha_sid" id="edit-captcha-sid" value="89115826" /> <input type="hidden" name="captcha_response" id="edit-captcha-response" value="NLPCaptcha" /> <div class="form-item"> <div id="nlpcaptcha_ajax_api_container"><script type="text/javascript"> var NLPOptions = {key:'c4823cf77a2526b0fba265e2af75c1b5'};</script><script type="text/javascript" src="http://call.nlpcaptcha.in/js/captcha.js" ></script></div> </div> </fieldset> <span class="btn-left"><span class="btn-right"><input type="submit" name="op" id="edit-submit" value="Save" class="form-submit" /></span></span> </div></form>