Financial problems are increasing month by month for the Jaganmohan Reddy Government. It could not show good results last year. The performance is slipping further. Coronavirus came at a right time to deal greater blows at a time when Andhra Pradesh was already suffering financially. Latest revenue figures are giving a big shock to analysts and ruling party leaders.
AP got a revenue of just Rs. 1,323 cr in April and Rs. 1,360 cr in May while the state gets an average Rs. 5,500 cr per month. The worst affected department is registrations which got nil revenue in April while it got Rs. 44 cr in May. Registrations showed a declining trend quite early last year due to sickness in the construction industry fueled by sand shortage. Lockdown brought registrations to a standstill almost. Once upon a time, registrations revenue touched even Rs. 500 cr per month.
Alarmingly, very poor revenue came from vehicle registrations even during auspicious Ugadi festival season in March and afterwards. Usually, sentiment makes people go for new cars in Ugadi. This time, lockdown exactly started around this festival season giving a big blow. This revenue was Rs. 178 cr in March when lockdown impact was only for a week. The revenue slipped to Rs. 35 cr in April and to Rs. 57 cr in May. The state has got some relief from comparatively better revenues from sales and excise tax.
