Is economy slowdown going to hit government income- a number of indicators and concerns around it tell the same. Coming to Andhra Pradesh, the lower demand in auto, infra and real estate is likely to impact state govt budget bigtime.
Through out the nation, the situation is similar and economy is showing the sign of trouble in the making. For the ongoing fiscal year, the financial inflow to the state govt is less than what was estimated.
If we look at the Q1 (April-July) figures, the state government had a good earnings only from petroleum products and transport department. Even though there is a jump from other incomes, it is quite less than what was estimated.
While agriculture is impacted due to delay of rains, inadequate sand is leading to slow pace in real estate and construction segment. Adding to it, the shortage of funds from GST, petroleum products and exercise dept also are considered to be major reasons for state govt to feel the pain of the financial recession.
While govt has set its growth target as 28%, an average of 5.37% growth was recorded in first four months. However, the finance department officials and experts feel that the same may not be the situation through out the year.
The steps being taken up by central govt to control the slowdown of economy and availability of liquid funds for banks may again put the economy back on track. As a follow up, the state govt’s growth is also expected to pick up the pace.
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