AP CM says resource gap due to misgovernance, bifurcation

The state’s economy gave “a sense of gloom and doom” due to the “twin burdens” of a decade of Congress misgovernance and bifurcation of the state besides a Rs 18,236 crore “resource gap” during the current year, Andhra Pradesh Chief Minister N Chandrababu Naidu said here today.

However, releasing a “white paper” on the state’s finances here today evening, the AP Chief Minister did not mention how implementing the promised loan waiver to farmers, womens’ self-help groups and weavers, would bleed the state’s exchequer further by nearly Rs 1 lakh crore.

“Since 2008-09, the state had been characterised by misgovernance, corruption scandals, and lack of development and strategic direction. The subsequent political upheaval due to the state’s bifurcation, also seriously affected the economy, stalled growth momentum, undermined AP’s reputation and standing as a model of good governance and development,” Chandrababu said.

The overall slowdown in the national economy, contraction of job opportunities and consistently high levels of inflation compounded the crisis and created a sense of gloom and doom, he said.

“The sense of alienation and despondency was further compounded by the manner in which the state was reorganised by the UPA government at the Centre. The state was divided without an iota of concern for, or attention to, the disastrous economic and financial consequences for the residual state of Andhra Pradesh,” he said.

“The resource gap for the current year was estimated at Rs 18,236 crore, which translated to a revenue deficit of 4.84 per cent and fiscal deficit of 7.18 per cent. Resource gap for the ten-month period of the current fiscal is around Rs 15,691 crore, compared to a Rs 3,555 crore surplus for Telangana. The current context has positioned Andhra Pradesh in a fiscally precarious position,” Chandrababu said.