6000 Crores Loss for the state., Huge crisis ahead!

Six thousand crores is the amount that Andhra Pradesh has lost in the lockdown period that too in the form of direct taxes. With this amount of revenue loss from the direct taxes, the indirect taxes revenue loss is expected to be much bigger, says government sources.

Andhra Pradesh Finance Minister Buggana Rajendra Prasad said that the loss this state suffered is very difficult to recoup and he explained how Industries and private institutions are the worst hit as the productivity is halted that made AP’s GST collection Zero like many other states. Of course, the VAT on excise and petrol sales remain to be negligible.

If we have a look at the numbers, about 165 crores of rupees is the revenue that the AP government gets per day and now that number has been dipped to 3 crores per day. Thanks to the new liquor policy by Jagan as the government themselves selling the liquor at their outlets otherwise the situation would have been more pathetic.

Along with this deficit, the AP government needs to roll another 1,300 crores on 1,000rs scheme for each person and incurs an additional 1,400 crores to provide essential items to the white ration card holders which is a very big financial burden at this moment.