Lot of concerns are arising ahead of AP budget going to be presented in next week’s Assembly session. Under the impact of multiple socio-economic and political blows, Andhra Pradesh is receiving worst ever setbacks financially. Though the budgets were made with high estimates, the actual spendings were going down gradually each year. If the Government expenditures decline, it automatically leads to economic slowdown due to absence of development projects and lack of related private investments.

Quite alarmingly, AP Government expenditure last year was just 73 per cent of its budget estimates while it was a whopping 119 per cent in 2014-`15. In fact, the Government spendings gradually came down from 104 per cent in 2015-`16 to 101 per cent in 2016-`17 to 93 per cent in 2017-`18 to 86 per cent in 2018-`19 to a lowest of 73 per cent in 2019-`20.

Last year, budget estimates were given for Rs. 2.27 Cr but the actual money spent came to just Rs. 1.66 Cr. This came to just threefourths spending of the budget estimates. The reasons for this were obviously due to lower revenues and also reduced financial support from the Central Government. In the first three months of this year also, revenue fell by 75 per cent nearly compared to pre-Coronavirus and pre-Jagan Reddy rule.

Analysts say the grim budget situation requires a strong political will and responsible governance to prevent AP from slipping into a deeper financial crisis.