AP Report 2019-final

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Status <strong>Report</strong> - Union’s Commitment to Andhra Pradesh Table 1.8 Does Deferred Expenditure constitute Resource Gap in FY 2014-15 - 27 -
Resource Gap for the Year 2014-15 Government of Andhra Pradesh confirmed in writing that all these bills pertain to State Government’s expenditure relating to binding commitments arising in FY 2014-15, and do not pertain to any bills of local governments or parastatals in Public Account. The expenditure was subsequently incurred in 2016-17, and the bills were passed by Treasury as ways and means position improved. All these constitute legitimate revenue expenditure due in 2014-15, but could not be incurred due to lack of funds and payment was deferred to subsequent year. An official committee of accountants may be constituted to verify the details furnished by the Andhra Pradesh government. Subject to such verification, these amounts constitute legitimate Resource Gap in 2014-15, and should be compensated by the Union as per the commitments made. As can be seen in Table 1.8, both these Deferred Expenditures- PRC arrears and Deferred Bills on revenue account - are expenditures that were necessary and predictable as per the standardized norms; they pertain to the State Government’s account, and not to local governments or parastatals; they pertain to FY 2014-15 and should have been incurred in 2014-15 and were deferred for want of resources; and the expenditure was incurred subsequently adding to the unfunded revenue deficit of later years. In the light of these facts and circumstances, it is fair and reasonable to include the amount of Rs. 6,870 Crore pertaining to these two items of Deferred Expenditure viz, PRC Arrears (Rs. 3,920 Crore) and Deferred Bills on revenue account (Rs. 2,950 Crore) as ‘Resource Gap’ for the year 2014-15. Amount Due towards Resource Gap FY 2014-15 The total amount of the ‘Resource Gap’ for FY 2014-15 not compensated by the Union and the current situation are summarised in Table 1.10. Table 1.10 gives a summary of the amounts due to be compensated by the Union Government towards Resource Gap in FY 2014-15, as per the Section 46(2) of <strong>AP</strong>RA, and Prime Minister’s Statement in Parliament. - 28 -
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(iv) Petrochemical Complex Governme
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Status Report - Union’s Commitmen
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The Ministry of Finance, Government
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Other Government Infrastructure Sta
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Progress / Developments Consequen
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T AFTERWORD Status Report - Union
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