Vijayawada: The Comptroller and Auditor General (CAG) has observed that the state’s public debt has been increasing at a rate of 16.52 percent annually during the period from 2018-19 to 2022-23. The report, which was tabled in the assembly on Friday, stated that public debt-GSDP ratio of AP increased from 22.15 percent in 2018-19 to 27.05 percent in 2022-23, which indicates that debt stabilisation may not be possible in near future.
The report, which was prepared after analysing debt stabilization measures initiated by successive govts in the state, found that there was steep fall in capital expenditure during 2022-23. “Capital expenditure constituted 3.45 percent of total expenditure. As a proportion of GSDP, capital expenditure was at five-year low during 2022-23 (0.55 percent). When compared with the budget estimates (30,680 crore) of 2022-23, the actual capital expenditure was only 23.61 percent of the projected amount. It decreased by 55.76 percent when compared to previous year and reduced by 63.74 percent between 2018-19 and 2022-23,” said the report.
The report further said that gross state domestic product (GSDP) at current prices grew at an average annual growth rate of 11.01 percent, from 8,73,721 crore in 2018-19 to 13,17,728 crore in 2022-23. “There was 16.22 percent growth in GSDP over 2021-22. The revenue receipts grew at 4.79 percent and the percentage of revenue receipts over GSDP decreased from 13.28 per cent in 2021-22 to 11.97 percent in 2022-23. Tax revenue increased by 9.25 percent during the period while the state’s own tax revenue increased by 9.93 percent,” it said.
The report further said that total expenditure (revenue expenditure, capital expenditure, loans and advances) increased from 1,77,674 crore in 2021-22 to 2,10,272 crore — an increase of 18.35 percent. “Of this, revenue expenditure showed an increase of 26.45 percent from 2021-22. Revenue deficit increased from 8,611 crore to 43,487 crore, a 405.02 percent increase over 2021-22. The increase was mainly due to increase in committed expenditure by 15,451 crore, financial assistance to local bodies and other institutions by 14,208 crore, and subsidies by 8,315 crore when compared to the previous year,” it noted, while adding that fiscal deficit increased from 25,013 crore in 2021-22 to 52,508 crore in 2022-23, an increase of 109.92 percent.
The report, which was prepared after analysing debt stabilization measures initiated by successive govts in the state, found that there was steep fall in capital expenditure during 2022-23. “Capital expenditure constituted 3.45 percent of total expenditure. As a proportion of GSDP, capital expenditure was at five-year low during 2022-23 (0.55 percent). When compared with the budget estimates (30,680 crore) of 2022-23, the actual capital expenditure was only 23.61 percent of the projected amount. It decreased by 55.76 percent when compared to previous year and reduced by 63.74 percent between 2018-19 and 2022-23,” said the report.
The report further said that gross state domestic product (GSDP) at current prices grew at an average annual growth rate of 11.01 percent, from 8,73,721 crore in 2018-19 to 13,17,728 crore in 2022-23. “There was 16.22 percent growth in GSDP over 2021-22. The revenue receipts grew at 4.79 percent and the percentage of revenue receipts over GSDP decreased from 13.28 per cent in 2021-22 to 11.97 percent in 2022-23. Tax revenue increased by 9.25 percent during the period while the state’s own tax revenue increased by 9.93 percent,” it said.
The report further said that total expenditure (revenue expenditure, capital expenditure, loans and advances) increased from 1,77,674 crore in 2021-22 to 2,10,272 crore — an increase of 18.35 percent. “Of this, revenue expenditure showed an increase of 26.45 percent from 2021-22. Revenue deficit increased from 8,611 crore to 43,487 crore, a 405.02 percent increase over 2021-22. The increase was mainly due to increase in committed expenditure by 15,451 crore, financial assistance to local bodies and other institutions by 14,208 crore, and subsidies by 8,315 crore when compared to the previous year,” it noted, while adding that fiscal deficit increased from 25,013 crore in 2021-22 to 52,508 crore in 2022-23, an increase of 109.92 percent.
