Even common people are getting to experience the level of economic crisis in the state. Ordinary employees are shaken as they have not received their salaries and pensions till the first fortnight of this month, and are not sure when they will arrive.
How to overcome the alarming monetary and revenue deficit
?
Today, Amaravati: The level of economic crisis in the state is coming to the common people as well. Ordinary employees are shaken as they have not received their salaries and pensions till the first fortnight of this month, and are not sure when they will arrive. On the other hand, many people are struggling for not getting the money for small bills. The matter of monopolists and suppliers is fine. In this month, there is no debt. In order to get out of overdraft, the government is delaying the days by creating a loan and paying it to the Reserve Bank. In such a situation, the revenue deficit of the state at the end of October has exceeded the expectations and is disturbing. The government has stated in the budget estimates that the revenue deficit for the entire year in the financial year 2022-23 will be only 17,036 crores. In fact, even that level of revenue deficit would cripple the state’s economy. As such, by the end of October this financial year, the revenue deficit has reached Rs.46,071 crore. 270 percent higher than expected.
The lion’s share of debt is for revenue expenditure
Reducing the revenue deficit is key to the principles of fiscal discipline in general. That is, if revenue expenditure exceeds revenue receipts, it becomes a revenue deficit. Not all revenue expenditure creates assets and income. On the one hand, debt appears to be universal. On the other hand, the lion’s share of those debts are being diverted to revenue expenditure. What is the condition of the state if it incurs debt and spends without creating assets? This is obvious to any layman who looks at family expenses. There are no ways to increase assets.. Debts are increasing. If there are no funds for the day-to-day running expenses of the government and also for the salaries, then it can be understood in what financial condition the state is in. During the first seven months of the current financial year, the revenue deficit in the state was Rs.46,071 crore and the fiscal deficit was Rs.53,440.60 crore. A deficit is a debt. Fiscal deficit is the amount incurred by the government in the form of debt when its revenue is not enough to meet its expenditure, i.e. when it does not have sufficient funds. The government has said that it will take a loan of Rs.48,724 crore in the current financial year. As such, the government has officially stated that it has taken Rs.53,440 crores together in the first seven months of public loan and open market loans. The debt had to be raised at this level while five more months were left in this financial year. Actually these are only official debts. Apart from these, the reliable sources have informed that another Rs.15 thousand crores of loans have been taken in the form of corporations. Those loans are diverted to government needs. The government is also playing the role of settling those debts. The government has said that it will take a loan of 724 crores. As such, the government has officially stated that it has taken Rs.53,440 crores together in the first seven months of public loan and open market loans. The debt had to be raised at this level while five more months were left in this financial year. Actually these are only official debts. Apart from these, the reliable sources have informed that another Rs.15 thousand crores of loans have been taken in the form of corporations. Those loans are diverted to government needs. The government is also playing the role of settling those debts. The government has said that it will take a loan of 724 crores. As such, the government has officially stated that it has taken Rs.53,440 crores together in the first seven months of public loan and open market loans. The debt had to be raised at this level while five more months were left in this financial year. Actually these are only official debts. Apart from these, the reliable sources have informed that another Rs.15 thousand crores of loans have been taken in the form of corporations. Those loans are diverted to government needs. The government is also playing the role of settling those debts. Apart from these, the reliable sources have informed that another Rs.15 thousand crores of loans have been taken in the form of corporations. Those loans are diverted to government needs. The government is also playing the role of settling those debts. Apart from these, the reliable sources have informed that another Rs.15 thousand crores of loans have been taken in the form of corporations. Those loans are diverted to government needs. The government is also playing the role of settling those debts.
