Pushing the state of Andhra Pradesh into more panic situation, the implications of demonetization have started to damage its economy more. This definitely was an expected one but pertaining to the existing conditions in AP, it’s become a major concern.
The Andhra Pradesh finance minister, Yanamala Ramakrishnudu, on Wednesday, said that ‘there’s around 30% plunge in state revenues and also, low-circulation of money is causing several problems among common people.’ While the minister of hopeful about the raise in state economy following the implementation of Goods and Sales Tax, he was totally unsure to extend it’s going to rescue the state, that has been reeling under wraps for special status/package.
Besides the note ban impact, Andhra registered an economic growth of 12.23% for first half of this fiscal year whereas India maintained its growth rate at 7.1%, said Yanamala. The state government is looking forward to push urbanization, services sector, tourism and IT with a view to achieve the target of 15% growth rate in the following fiscal year. However, it is not just Andhra Pradesh, all states across the country are suffering a major dip in economy including Telangana.
Speaking to the media, AP finance chief secretary Satya Prakash Tucker said, ‘agriculture had a significant portion of contribution towards economy growth and some sigh of relief is that few insurance companies have forward to extend cover for aquaculture.’