The Finance Minister of Andhra Pradesh, Mr. Bugganna Rajendranath, presented the Budget for the state for the financial year 2021-22 on May 20, 2021. Note that due to the impact of COVID-19, 2020-21 was not a standard year with respect to the performance of the economy and government finances. In this note, 2021-22 budget estimates have been compared to the actuals for 2019-20 (in terms of compounded annual growth rate or CAGR). Annexure to this note provides a comparison of the revised estimates for 2020-21 and budget estimates for 2021-22.
Budget Highlights
- The Gross State Domestic Product (GSDP) of Andhra Pradesh for 2021-22 (at current prices) is projected to be Rs 10,61,781 crore. This is an annual increase of 4% over the actual GSDP of 2019-20. The GSDP for 2021-22 is estimated to be 5.1% higher than the revised estimate of GSDP for 2020-21 (Rs 10,19,146 crore). In 2020-21, the GSDP of Andhra Pradesh is estimated to grow by 4% over the previous year. In comparison, the GDP of India at current prices is estimated to contract by 3.8% in 2020-21 and grow by 14.4% in 2021-22.
- Total expenditure for 2021-22 is estimated to be Rs 2,29,779 crore, an annual increase of 15% over the actual expenditure in 2019-20.
- Total receipts (excluding borrowings) for 2021-22 are estimated to be Rs 1,77,247 crore, an annual increase of 24% over 2019-20. In 2020-21, total receipts (excluding borrowings) are estimated to fall short of the budget estimate by Rs 43,433 crore (a shortfall of 27%).
- Revenue deficit for 2021-22 is estimated to be Rs 5,000 crore, which is 0.47% of the GSDP. In 2020-21, as per the revised estimate, revenue deficit is estimated at Rs 34,927 crore (3.46% of GSDP) as compared to a revenue deficit of Rs 18,434 crore (1.82% of GSDP) estimated at the budget stage.
- Fiscal deficit for 2021-22 is targeted at Rs 37,030 crore (3.49% of GSDP). In 2020-21, fiscal deficit is expected to be 5.38% of GSDP as per the revised estimate, higher than the budget estimate of 4.78% of GSDP.
Policy Highlights
- Dairy Development: Under the GoAP-AMUL project, women farmers will be organised in 9,899 Mahila Dairy Sahakara Sanghalu. These groups will be provided with infrastructural and operational support to ensure remunerative price and economic development.
- Budgets for women, child, and minorities: The state government presented special statements on gender budget and child budget under the 2021-22 budget. It has also introduced a minority action plan under the budget which will encapsulate budget provisions for minorities.
Andhra Pradesh’s Economy
|
Figure 1: Growth in GSDP and sectors in Andhra Pradesh at constant prices (2011-12) Note: These numbers are as per constant prices (2011-12) which implies that the growth rate is adjusted for inflation. |
Budget Estimates for 2021-22
- Total expenditure in 2021-22 is targeted at Rs 2,29,779 crore. This is an annual increase of 15% over the actual expenditure in 2019-20. This expenditure is proposed to be met through receipts (other than borrowings) of Rs 1,77,247 crore and borrowings of Rs 50,525 crore. Total receipts in 2021-22 (other than borrowings) are expected to register an annual increase of 24% over the actual receipts in 2019-20.
- As per the revised estimates for 2020-21, total expenditure is estimated to be 17% lower than the budget estimates. In 2020-21, receipts (other than borrowings) are estimated to be 27% lower than budgeted.
- The state expects a revenue deficit of Rs 5,000 crore in 2021-22 (0.47% of GSDP). In 2020-21, revenue deficit is estimated to be Rs 34,927 crore at the revised stage, as compared to the revenue deficit of Rs 18,434 crore estimated at the budget stage. Fiscal deficit for 2021-22 is estimated to be Rs 37,030 crore (3.49% of GSDP). In 2020-21, as per the revised estimates, fiscal deficit is estimated to increase to 5.38% of GSDP as compared to 4.78% of GSDP estimated at the budget stage.
Table 1: Budget 2021-22 - Key figures (in Rs crore)
Items |
2019-20 Actuals |
2020-21 Budgeted |
2020-21 Revised |
% change from BE 2020-21 to RE 2020-21 |
2021-22 Budgeted |
Annualised Change (2019-20 to 2021-22 BE) |
Total Expenditure |
1,73,701 |
2,24,789 |
1,85,468 |
-17% |
2,29,779 |
15% |
A. Receipts (except borrowings) |
1,15,389 |
1,62,558 |
1,19,126 |
-27% |
1,77,247 |
24% |
B. Borrowings |
51,687 |
60,258 |
57,805 |
-4% |
50,525 |
-1% |
Total Receipts (A+B) |
1,67,077 |
2,22,816 |
1,76,930 |
-21% |
2,27,772 |
17% |
Revenue Deficit |
26,441 |
18,434 |
34,927 |
89% |
5,000 |
-57% |
As % of GSDP |
2.72% |
1.82% |
3.46% |
0.47% |
||
Fiscal Deficit |
39,684 |
48,296 |
54,369 |
13% |
37,030 |
-3% |
As % of GSDP |
4.08% |
4.78% |
5.38% |
3.49% |
||
Primary Deficit |
22,031 |
27,912 |
32,343 |
16% |
14,290 |
-19% |
As % of GSDP |
2.26% |
2.76% |
3.20% |
1.35% |
Note: BE is Budget Estimates; RE is Revised Estimates.
Sources: Andhra Pradesh Budget Documents 2021-22; PRS.
Expenditure in 2021-22
Capital Outlay Andhra Pradesh’s capital outlay for 2021-22 is estimated to be Rs 31,198 crore, which is an annual increase of 60% over 2019-20. The revised estimate for capital outlay in 2020-21 is Rs 18,797 crore which is 37% lower than the budget estimate. This includes a reduction of Rs 6,786 crore in the allocation towards irrigation and flood control, and a reduction of Rs 1,962 crore towards transport. This accounts for 79% of the total reduction in capital outlay in 2020-21. |
- Capital expenditure for 2021-22 is proposed to be Rs 47,583 crore, which is an annual increase of 15% over the actual capital expenditure in 2019-20. Capital expenditure includes expenditure affecting the assets and liabilities of the state, such as: (i) capital outlay, i.e., expenditure which leads to the creation of assets (such as bridges and hospitals), and (ii) repayment and grant of loans by the state government.
- Revenue expenditure for 2021-22 is proposed to be Rs 1,82,197 crore, which is an annual increase of 15% over 2019-20. This expenditure includes the payment of salaries, pensions, interest, and subsidies. In 2020-21, as per the revised estimates, revenue expenditure is estimated to be 15% lower than the budget estimates.
Table 2: Expenditure budget 2021-22 (in Rs crore)
Items |
2019-20 Actuals |
2020-21 Budgeted |
2020-21 Revised |
% change from BE 2020-21 to RE 2020-21 |
2021-22 Budgeted |
Annualised Change (2019-20 to 2021-22 BE) |
Capital Expenditure |
36,226 |
44,397 |
32,478 |
-27% |
47,583 |
15% |
of which Capital Outlay |
12,242 |
29,908 |
18,797 |
-37% |
31,198 |
60% |
Revenue Expenditure |
1,37,475 |
1,80,393 |
1,52,990 |
-15% |
1,82,197 |
15% |
Total Expenditure |
1,73,701 |
2,24,789 |
1,85,468 |
-17% |
2,29,779 |
15% |
A. Debt Repayment |
18,625 |
13,935 |
11,973 |
-14% |
15,503 |
-9% |
B. Interest Payments |
17,653 |
20,383 |
22,026 |
8% |
22,740 |
13% |
Debt Servicing (A+B) |
36,278 |
34,318 |
33,999 |
-0.9% |
38,243 |
3% |
Note: BE is Budget Estimates; RE is Revised Estimates.
Sources: Andhra Pradesh Budget Documents 2021-22; PRS.
Sectoral expenditure in 2021-22
The sectors listed below account for 67% of the total expenditure on sectors by the state in 2021-22. A comparison of Andhra Pradesh’s expenditure on the key sectors with other states can be found in Annexure 1.
Table 3: Sector-wise expenditure under Andhra Pradesh Budget 2021-22 (in Rs crore)
Sector |
2019-20 Actuals |
2020-21 BE |
2020-21 RE |
2021-22 BE |
Annualised Change (2019-20 to 2021-22 BE) |
Budget provisions 2021-22 |
Welfare of SC, ST, OBC, and Minorities |
21,764 |
41,430 |
23,414 |
27,870 |
13% |
|
Education, Sports, Arts, and Culture |
26,643 |
25,517 |
24,268 |
27,212 |
1% |
|
Rural Development |
8,327 |
13,544 |
14,252 |
14,943 |
34% |
|
Health and Family Welfare |
7,538 |
11,673 |
9,570 |
14,088 |
37% |
|
Agriculture and allied activities |
6,904 |
13,563 |
10,525 |
13,299 |
39% |
|
Irrigation and Flood Control |
4,931 |
11,358 |
4,518 |
12,691 |
60% |
|
Social Welfare and Nutrition |
6,382 |
10,795 |
7,202 |
11,384 |
34% |
|
Urban Development |
4,569 |
7,014 |
4,637 |
8,330 |
35% |
|
Transport |
2,104 |
6,250 |
4,968 |
7,458 |
88% |
|
Police |
5,658 |
5,299 |
5,932 |
6,398 |
6% |
|
% of total expenditure on all sectors |
63% |
70% |
64% |
67% |
|
|
Sources: Andhra Pradesh Budget Documents 2021-22; PRS.
Receipts in 2021-22
- Total revenue receipts for 2021-22 are estimated to be Rs 1,77,196 crore, an annual increase of 26% over 2019-20. Of this, Rs 92,315 crore (52%) will be raised by the state through its own resources, and Rs 84,881 crore (48%) will come from the centre. Resources from the centre will be in the form of the state’s share in central taxes (15% of revenue receipts) and grants (33% of revenue receipts).
- Devolution: In 2021-22, receipts from the state’s share in central taxes (devolution) are estimated to register an annual decrease of 2% over actual devolution in 2019-20. As per the revised estimates, devolution to Andhra Pradesh in 2020-21 is estimated to be 24% lower than the budget estimate. This may be due to a 30% cut in the union budget for devolution to states, from Rs 7,84,181 crore at the budgeted stage to Rs 5,49,959 crore at the revised stage.
- State’s own tax revenue: Total own tax revenue of the state in 2021-22 is estimated to be Rs 85,265 crore, an annual increase of 22% over 2019-20. In 2020-21, as per the revised estimates, state’s own tax revenue is estimated to be 19% lower than the budget estimates. In 2021-22, the state’s own tax to GSDP ratio is targeted at 8% which is notably higher than the revised estimate of 5.7% in 2020-21. This implies that growth in the state’s own tax is estimated to be higher than the economic growth.
Table 4: Break up of state government receipts (in Rs crore)
Items |
2019-20 Actuals |
2020-21 BE |
2020-21 RE |
% change from BE 2020-21 to RE 2020-21 |
2021-22 BE |
Annualised Change (2019-20 to 2021-22 BE) |
State's Own Tax |
57,601 |
70,653 |
57,359 |
-19% |
85,265 |
22% |
State's Own Non-Tax |
3,315 |
5,866 |
3,310 |
-44% |
7,050 |
46% |
Share in Central Taxes |
28,242 |
32,264 |
24,461 |
-24% |
26,951 |
-2% |
Grants-in-aid from Centre |
21,876 |
53,175 |
32,934 |
-38% |
57,931 |
63% |
Total Revenue Receipts |
1,11,034 |
1,61,958 |
1,18,063 |
-27% |
1,77,196 |
26% |
Borrowings |
51,687 |
60,258 |
57,805 |
-4% |
50,525 |
-1% |
Other receipts |
4,355 |
600 |
1,062 |
77% |
50 |
-89% |
Total Capital Receipts |
56,043 |
60,858 |
58,867 |
-3% |
50,576 |
-5% |
Total Receipts |
1,67,077 |
2,22,816 |
1,76,930 |
-21% |
2,27,772 |
17% |
GST Compensation The GST (Compensation to States) Act, 2017 guarantees states compensation for five years (till 2022) for any revenue loss arising due to GST implementation. The Act guarantees states a 14% annual growth in their GST revenue, failing which compensation grants are provided to states to meet the shortfall. These grants are funded through the GST compensation cess levied by the centre. As the cess collection is not sufficient to meet the compensation requirement of states in 2020-21, a part of their requirement will be met through loans from the centre (which will be repaid using future cess collection). The state has not estimated any GST compensation grants for either 2020-21 or 2021-22 in the budget. As per the revised estimates, the state is estimated to receive a loan amounting to Rs 2,136 crore in 2020-21 in lieu of GST compensation. |
Sources: Andhra Pradesh Budget Documents 2021-22; PRS.
- In 2021-22, State GST (SGST) is estimated to be Rs 31,000 crore, the largest source of the state’s own tax revenue (36%). It is estimated to increase at an annual rate of 24% over the actual SGST revenue in 2019-20. In 2020-21, SGST is estimated to be 26% less than the budget estimate.
- In 2021-22, the state is expected to generate Rs 24,500 crore through the collection of Sales Tax/VAT, an annual increase of 7% over 2019-20.
- In 2020-21, the State Excise collection is estimated to be 46% higher than the budget estimate.
- In 2021-22, revenue from taxes and duties on electricity is estimated to be Rs 1,008 crore, significantly higher than Rs 13 crore in 2020-21 (revised estimate) and Rs 11 crore in 2019-20.
Table 5: Some of the major state’s own tax revenue sources (in Rs crore)
Head |
2019-20 Actuals |
2020-21 BE |
2020-21 RE |
% change from BE 2020-21 to RE 2020-21 |
2021-22 BE |
Annualised Change (2019-20 to 2021-22 BE) |
% of Revenue Receipts in 2021-22 |
State GST |
20,227 |
25,604 |
18,871 |
-26% |
31,000 |
24% |
17% |
Sales Tax/ VAT |
21,410 |
25,743 |
17,800 |
-31% |
24,500 |
7% |
14% |
State Excise |
6,915 |
7,931 |
11,575 |
46% |
15,000 |
47% |
8% |
Stamps Duty and Registration Fees |
5,318 |
6,337 |
5,601 |
-12% |
8,000 |
23% |
5% |
Taxes on Vehicles |
3,279 |
4,463 |
2,920 |
-35% |
5,000 |
23% |
3% |
Taxes and Duties on Electricity |
11 |
13 |
13 |
-5% |
1,008 |
846% |
1% |
Land Revenue |
21 |
32 |
143 |
348% |
172 |
184% |
0% |
GST Compensation Grants |
1,841 |
- |
- |
- |
- |
- |
- |
GST Compensation Loans |
- |
- |
2,136 |
- |
- |
- |
- |
Sources: Andhra Pradesh Budget Documents 2021-22; PRS.
Deficits, Debt, and FRBM Targets for 2021-22
The Andhra Pradesh Fiscal Responsibility and Budget Management (FRBM) Act, 2005 provides annual targets to progressively reduce the outstanding liabilities, revenue deficit, and fiscal deficit of the state government.
Fiscal Roadmap for 2021-26 The 15th Finance Commission recommended the following fiscal deficit targets for states for the 2021-26 period (as a % of GSDP): (i) 4% for 2021-22, (ii) 3.5% for 2022-23, and (iii) 3% for 2023-26. The Commission estimates that this path will lead to a decrease in total liabilities of Andhra Pradesh from 35% of GSDP in 2020-21 to 32.1% of GSDP in 2025-26. If a state is unable to fully utilise the sanctioned borrowing limit as specified above in any of the first four years (2021-25), it can avail the unutilised borrowing amount in subsequent years (within the 2021-26 period). Additional borrowing worth 0.5% of GSDP will be allowed each year for the first four years (2021-25) upon undertaking certain power sector reforms including: (i) reduction in operational losses, (ii) reduction in revenue gap, (iii) reduction in payment of cash subsidy by adopting direct benefit transfer, and (iv) reduction in tariff subsidy as a percentage of revenue. |
Revenue deficit: It is the excess of revenue expenditure over revenue receipts. A revenue deficit implies that the government needs to borrow to finance its expenses which do not increase its assets or reduces its liabilities. A revenue deficit indicates that the revenue receipts of the state are not sufficient to meet the revenue expenditure requirements. The budget estimates a revenue deficit of Rs 5,000 crore (or 0.47% of the GSDP) in 2021-22. In 2020-21, as per the revised estimates, revenue deficit is estimated at Rs 34,927 crore (3.46% of GSDP) as compared to a revenue deficit of Rs 18,434 crore (1.82% of GSDP) estimated at the budget stage. The 15th Finance Commission has recommended post-devolution revenue deficit grants of Rs 30,497 crore for Andhra Pradesh for the period between 2021-22 and 2023-24.
Fiscal deficit: It is the excess of total expenditure over total receipts. This gap is filled by borrowings which leads to an increase in total liabilities. In 2021-22, the fiscal deficit is estimated to be Rs 37,030 crore (3.49% of GSDP). As per the revised estimates, in 2020-21, the fiscal deficit of the state is estimated to be 5.38% of GSDP, which is higher than the budget estimate of 4.78%.
Enhanced borrowing limit in 2020-21: Given the situation due to COVID-19, the central government permitted states to increase their fiscal deficit up to 5% of GSDP in 2020-21. Andhra Pradesh’s fiscal deficit for 2020-21 is expected to be 5.38%, which is higher than the increased limit. All states were allowed to increase their fiscal deficit up to 4% of GSDP. The remaining 1% of GSDP is conditional on the implementation of reforms by states in the following areas (0.25% of GSDP for each reform): (i) one nation one ration card, (ii) ease of doing business, (iii) urban local body/ utility, and (iv) power distribution. As of February 17, 2021, the state has completed the first three reforms whereas it has partially completed the reforms in the power distribution. Andhra Pradesh is eligible to borrow Rs 9,090 crore for implementing these reforms.
Outstanding liabilities: Outstanding liabilities refers to the accumulation of total borrowings at the end of a financial year. In 2021-22, the outstanding liabilities are estimated to be 36.5% of the GSDP, higher than the revised estimate for 2020-21 (35.2% of GSDP). The outstanding liabilities are estimated to increase from 31% in 2019-20 to 36.5% in 2021-22.
Table 6: Budget targets for deficits for Andhra Pradesh (% of GSDP)
Year |
Revenue Deficit |
Fiscal Deficit |
Outstanding liabilities |
2019-20 (Actuals) |
2.7% |
4.1% |
31.0% |
2020-21 (Revised) |
3.5% |
5.4% |
35.2% |
2021-22 (Budget) |
0.5% |
3.5% |
36.5% |
Note: Outstanding liabilities includes outstanding debt under Internal Debt, Loans and Advances from Centre, Small Savings, Provident Fund, and Deposit and Reserve Funds.
Sources: Andhra Pradesh Budget Documents 2021-22; PRS.
Figure 2: Revenue and Fiscal Deficit (as % of GSDP) Note: RE is Revised Estimates; BE is Budget estimates. Sources: Andhra Pradesh Budget Documents 2021-22; PRS. |
Figure 3: Outstanding liabilities targets (as % of GSDP) Note: RE is Revised Estimates; BE is budget estimates. Sources: Andhra Pradesh Budget Documents 2021-22; PRS. |
Annexure 1: Comparison of states’ expenditure on key sectors
The graphs below compare Andhra Pradesh’s expenditure on six key sectors as a proportion of its total expenditure on all sectors. The average for a sector indicates the average expenditure in that sector by 30 states (including Andhra Pradesh) as per their budget estimates of 2020-21.[1]
- Education: Andhra Pradesh has allocated 12.8% of its total expenditure for education in 2021-22. This is lower than the average allocation (15.8%) for education by all states (2020-21 BE).
- Health: Andhra Pradesh has allocated 6.6% of its total expenditure on health, which is higher than the average allocation for health by states (5.5%).
- Agriculture: Andhra Pradesh has allocated 6.2% of its total expenditure towards agriculture and allied activities. This is similar to the average allocation for agriculture by states (6.3%).
- Rural development: Andhra Pradesh has allocated 7% of its expenditure on rural development. This is higher than the average allocation for rural development by states (6.1%).
- Police: Andhra Pradesh has allocated 3% of its total expenditure on police, which is lower than the average expenditure on police by states (4.3%).
- Roads and bridges: Andhra Pradesh has allocated 1.7% of its total expenditure on roads and bridges, which is significantly lower than the average allocation by states (4.3%).
Note: 2019-20, 2020-21 (BE), 2020-21 (RE), and 2021-22 (BE) figures are for Andhra Pradesh.
Sources: Andhra Pradesh Budget Documents 2021-22; various state budgets; PRS.
Annexure 2: Recommendations of the 15th Finance Commission for 2021-26
The 15th Finance Commission’s (FC) report for the 2021-26 period was released on February 1, 2021. For the 2021-26 period, the Commission has recommended the share of states in the divisible pool of central taxes to be 41%, same as that for 2020-21 (also recommended by the 15th FC in its report for 2020-21). This is 1% point lower than the 42% share recommended by the 14th FC (for the 2015-20 period) to separately provide funds for the newly formed union territories of Jammu and Kashmir, and Ladakh. The 15th FC proposed revised criteria for determining the share of individual states (different from 14th FC). Based on the 15th FC’s recommendations for the period 2021-26, Andhra Pradesh will have a 1.66% share in the divisible pool of central taxes. This implies that out of every Rs 100 of revenue in the divisible pool during the 2021-26 period, Andhra Pradesh will receive Rs 1.66. This is 8.2% lower than Rs 1.81 share recommended by the 14th FC for the 2015-20 period.
Table 7: Share of states in the divisible pool of central taxes under the 14th and 15th FC periods
State |
14th FC |
15th FC |
15th FC |
% change |
|
2015-20 |
2020-21 |
2021-26 |
2015-20 |
2020-21 |
|
Andhra Pradesh |
1.81 |
1.69 |
1.66 |
-8.2% |
-1.6% |
Arunachal Pradesh |
0.58 |
0.72 |
0.72 |
25.2% |
-0.2% |
Assam |
1.39 |
1.28 |
1.28 |
-7.8% |
-0.1% |
Bihar |
4.06 |
4.13 |
4.12 |
1.6% |
0.0% |
Chhattisgarh |
1.29 |
1.40 |
1.40 |
8.0% |
-0.3% |
Goa |
0.16 |
0.16 |
0.16 |
-0.3% |
0.0% |
Gujarat |
1.30 |
1.39 |
1.43 |
10.1% |
2.4% |
Haryana |
0.46 |
0.44 |
0.45 |
-1.6% |
1.0% |
Himachal Pradesh |
0.30 |
0.33 |
0.34 |
13.6% |
3.9% |
Jammu & Kashmir |
0.78 |
- |
- |
- |
- |
Jharkhand |
1.32 |
1.36 |
1.36 |
2.8% |
-0.2% |
Karnataka |
1.98 |
1.50 |
1.50 |
-24.5% |
0.0% |
Kerala |
1.05 |
0.80 |
0.79 |
-24.8% |
-0.9% |
Madhya Pradesh |
3.17 |
3.23 |
3.22 |
1.5% |
-0.5% |
Maharashtra |
2.32 |
2.52 |
2.59 |
11.7% |
3.0% |
Manipur |
0.26 |
0.29 |
0.29 |
13.3% |
-0.3% |
Meghalaya |
0.27 |
0.31 |
0.31 |
16.6% |
0.3% |
Mizoram |
0.19 |
0.21 |
0.21 |
6.1% |
-1.2% |
Nagaland |
0.21 |
0.24 |
0.23 |
11.5% |
-0.7% |
Odisha |
1.95 |
1.90 |
1.86 |
-4.8% |
-2.2% |
Punjab |
0.66 |
0.73 |
0.74 |
11.9% |
1.1% |
Rajasthan |
2.31 |
2.45 |
2.47 |
7.1% |
0.8% |
Sikkim |
0.15 |
0.16 |
0.16 |
3.2% |
0.0% |
Tamil Nadu |
1.69 |
1.72 |
1.67 |
-1.0% |
-2.6% |
Telangana |
1.02 |
0.88 |
0.86 |
-15.8% |
-1.5% |
Tripura |
0.27 |
0.29 |
0.29 |
7.7% |
-0.1% |
Uttar Pradesh |
7.54 |
7.35 |
7.36 |
-2.5% |
0.0% |
Uttarakhand |
0.44 |
0.45 |
0.46 |
3.7% |
1.3% |
West Bengal |
3.08 |
3.08 |
3.08 |
0.3% |
0.1% |
Total |
42.00 |
41.00 |
41.00 |
Note: Although the 15th Finance Commission recommended the same criteria for 2020-21 and 2021-26 periods, the reference period for computation on some underlying indicators are different. This is why the share in the divisible pool in 2020-21 and 2021-26 differ for states. State’s share has been rounded off to two decimal places.
Sources: Reports of 14th and 15th FCs; Union Budget Documents 2021-22; PRS.
The 15th FC recommended grants worth Rs 10.3 lakh crore for states over five years (2021-26). A portion of these grants will be conditional. 17 states will receive revenue deficit grants during this period. Sector-specific grants include grants for sectors such as health, agriculture, and education. Grants to local governments include: (i) Rs 1.2 lakh crore for urban local bodies, (ii) Rs 2.4 lakh crore for rural local bodies, and (iii) health grants worth Rs 70,000 crore through local bodies for healthcare infrastructure. |
Table 8: Grants recommended for 2021-26 (Rs crore)
Note: This does not include competition-based grants including *grants for incubation of new cities (part of local bodies grants), and #grants for school education, and aspirational districts and blocks. |
|||||||||||||||||||||
State-specific grants recommended for Andhra Pradesh include: (i) Rs 1,400 crore for the development of core infrastructure in Vishakhapatnam, and (ii) Rs 900 crore for the provision of safe and potable water. |
Table 9: Taxes devolved to states as per Union Budget 2021-22
State |
2019-20 |
2020-21 |
2021-22 |
Andhra Pradesh |
29,421 |
22,611 |
26,935 |
Arunachal Pradesh |
9,363 |
9,681 |
11,694 |
Assam |
22,627 |
17,220 |
20,819 |
Bihar |
66,049 |
55,334 |
66,942 |
Chhattisgarh |
21,049 |
18,799 |
22,676 |
Goa |
2,583 |
2,123 |
2,569 |
Gujarat |
21,077 |
18,689 |
23,148 |
Haryana |
7,408 |
5,951 |
7,275 |
Himachal Pradesh |
4,873 |
4,394 |
5,524 |
Jammu & Kashmir |
12,623 |
-38 |
- |
Jharkhand |
21,452 |
18,221 |
22,010 |
Karnataka |
32,209 |
20,053 |
24,273 |
Kerala |
17,084 |
10,686 |
12,812 |
Madhya Pradesh |
51,584 |
43,373 |
52,247 |
Maharashtra |
37,732 |
33,743 |
42,044 |
Manipur |
4,216 |
3,949 |
4,765 |
Meghalaya |
4,387 |
4,207 |
5,105 |
Mizoram |
3,144 |
2,783 |
3,328 |
Nagaland |
3,403 |
3,151 |
3,787 |
Odisha |
31,724 |
25,460 |
30,137 |
Punjab |
10,777 |
9,834 |
12,027 |
Rajasthan |
37,554 |
32,885 |
40,107 |
Sikkim |
2,508 |
2,134 |
2,582 |
Tamil Nadu |
27,493 |
23,039 |
27,148 |
Telangana |
16,655 |
11,732 |
13,990 |
Tripura |
4,387 |
3,899 |
4,712 |
Uttar Pradesh |
1,22,729 |
98,618 |
1,19,395 |
Uttarakhand |
7,189 |
6,072 |
7,441 |
West Bengal |
50,051 |
41,353 |
50,070 |
Total |
6,83,353 |
5,49,959 |
6,65,563 |
Note: Actuals for 2019-20 and Revised Estimates for 2020-21 have been reported in the Union Budget after adjusting for excess or less devolution in previous years.
Sources: Union Budget Documents 2021-22; PRS.
Annexure 3: Comparison of 2020-21 Revised and 2021-22 Budget Estimates
The following tables compare the budget estimates for 2021-22 with the revised estimates for 2020-21.
Table 10: Key Components of State's Receipts and Expenditure
Particular |
2020-21 RE |
2021-22 BE |
% change from 2020-21 RE to 2021-22 BE |
Receipts (1+2) |
1,76,930 |
2,27,772 |
29% |
Receipts except Borrowings |
1,19,126 |
1,77,247 |
49% |
1. Revenue Receipts (a+b+c+d) |
1,18,063 |
1,77,196 |
50% |
a. Own Tax Revenue |
57,359 |
85,265 |
49% |
b. Own Non-Tax Revenue |
3,310 |
7,050 |
113% |
c. Share in central taxes |
24,461 |
26,951 |
10% |
d. Grants-in-aid from the Centre |
32,934 |
57,931 |
76% |
Of which GST compensation |
0 |
0 |
- |
2. Capital Receipts |
58,867 |
50,576 |
-14% |
a. Borrowings |
57,805 |
50,525 |
-13% |
Of which GST compensation loan |
2,136 |
- |
- |
Expenditure (3+4) |
1,85,468 |
2,29,779 |
24% |
3. Revenue Expenditure |
1,52,990 |
1,82,197 |
19% |
4. Capital Expenditure |
32,478 |
47,583 |
47% |
i. Capital Outlay |
18,797 |
31,198 |
66% |
ii. Debt Repayment |
11,973 |
15,503 |
29% |
Revenue Deficit |
34,927 |
5,000 |
-86% |
Fiscal Deficit |
54,369 |
37,030 |
-32% |
Revenue Deficit (as % of GSDP) |
3.46% |
0.47% |
- |
Fiscal Deficit (as % of GSDP) |
5.38% |
3.49% |
- |
Sources: Andhra Pradesh Budget Documents 2021-22; PRS.
Table 11: Key Components of State's Own Tax Revenue
Tax |
2020-21 RE |
2021-22 BE |
% change from 2020-21 RE to 2021-22 BE |
State GST |
18,871 |
31,000 |
64% |
Sales Tax/ VAT |
17,800 |
24,500 |
38% |
State Excise Duty |
11,575 |
15,000 |
30% |
Stamps Duty and Registration Fees |
5,601 |
8,000 |
43% |
Taxes on Vehicles |
2,920 |
5,000 |
71% |
Taxes and Duties on Electricity |
13 |
1,008 |
7964% |
Land Revenue |
143 |
172 |
20% |
Sources: Andhra Pradesh Budget Documents 2021-22; PRS.
Table 12: Allocation towards Key Sector
Sector |
2020-21 RE |
2021-22 BE |
% change from 2020-21 RE to 2021-22 BE |
Welfare of SC, ST, OBC, and Minorities |
23,414 |
27,870 |
19% |
Education, Sports, Arts, and Culture |
24,268 |
27,212 |
12% |
Rural Development |
14,252 |
14,943 |
5% |
Health and Family Welfare |
9,570 |
14,088 |
47% |
Agriculture and allied activities |
10,525 |
13,299 |
26% |
Irrigation and Flood Control |
4,518 |
12,691 |
181% |
Social Welfare and Nutrition |
7,202 |
11,384 |
58% |
Urban Development |
4,637 |
8,330 |
80% |
Transport |
4,968 |
7,458 |
50% |
Police |
5,932 |
6,398 |
8% |
Sources: Andhra Pradesh Budget Documents 2021-22; PRS.
[1] The 30 states include the Union Territory of Delhi and Union Territory of Jammu and Kashmir.
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