According to Elara Capital's analysis of the CAG, data highlighted the significant revenue drop for 17 states across India, including Andhra Pradesh.
K. Ram Mohan Naidu, TDP MP from Srikakulam Lok Sabha constituency said, “The new government has continued spending without working on revenue sources. This government lacks basic administrative capabilities about revenues and welfare spending. Andhra Pradesh is headed for a disaster.”
The overall expenditure of the states during the first quarter was more or less at the same level as the previous corresponding period. The steady flow of compensation from the Centre is helping states like Andhra Pradesh, observe economist. The compensation cess despite moderate GST collections is helping the states with moderate revenues.