Mammoth AP budget

Where’ll the money come from?

• Govt to incur a revenue deficit of `6,064 cr
• Fiscal deficit projected to be about `12,064 cr
• Thrust on education, irrigation, health sectors
• Aadhaar to be linked to all government schemes
• Rs. 50 lakh Development Fund for MLAs scrapped
• 5,000 MW non-renewable energy targeted
• 15 sea ports to be developed under PPP model

• Yanamala cites severe stress in fiscal health of State
• Agri budget on Friday to detail loan waiver schemes

Hyderabad: Andhra Pradesh Finance Minister Y Ramakrishnudu on Wednesday presented a Rs 1.11 lakh crore budget with special focus on education, irrigation and health sectors which have got the highest allocation.

In regard to the loan waiver scheme, the Finance Minister said that they had yet to overcome various technical hurdles raised by the RBI and the banks. In spite of the huge financial burden that the crop loan waiver could have on the State, the government believes this was necessary to provide relief to farmers and build a strong foundation for sustainable agriculture. The details of multi-pronged strategy to make agriculture sustainable would be announced in the agriculture budget that would be presented on Friday. This would cover allocations for agriculture and eight allied sectors including horticulture, animal husbandry, fisheries, marketing, cooperatives, sugar, water supply and food processing. It would ensure better coordination among officials of various departments and instil confidence among agriculturists with various steps for their benefits.

The Rs. 1, 11,824-crore budget for 2014-15 includes a Plan expenditure of Rs 26,673 crore and non-Plan outlay of Rs 85,151 crore. This almost equals to 75% of the budget that was presented in the United Andhra Pradesh which was Rs 1.61 lakh crore.

Rs 15,682 crore has been allocated for primary, higher and intermediate education. Rs 8,465 crore has been allocated for irrigation and Rs 4,388 crore for health sector.

The first budget after the bifurcation of the state leaves a revenue deficit of Rs 6,064 crore and a fiscal deficit of Rs 12,064 crore, the latter working out to 2.3 per cent of GSDP.

The government expects that major share of revenue would come from stamp duty and registration fee, motor vehicle tax. The central grants being received by the state is also factored in. The Minister said the budget presented the financial status of the combined state of AP for the first two months and that of the residuary State for the remaining 10 months. It also includes additional assistance of Rs 14,500 crore from the Centre in the context of State reorganisation.

As a result, the ministers said estimates of receipts and expenditure and the revenue and fiscal deficit figures got impacted making it highly difficult for the State to comply with the norms prescribed by the AP FRBM Act. (Fiscal Responsibility and Budget ManagementAct)

The government has decided to make Aadhaar number compulsory in the implementation of all the government schemes to ensure flow of benefits to the target group and avoid leakages. Ramakrishnudu said from next year to improve efficiency in budgeting and expenditure management there would not be automatic incremental allocations in the budget. The departments would have to justify proposed expenditure for each item from zero level. The AP government has also decided to do away with Rs 50 lakh Assembly Constituency Development fund for MLAs. The Minister said the Government had plans to develop 3,000 MW of wind and 2,000 MW of solar power in a phased manner. An amount of Rs 5,000 crore is proposed to be invested in developing a green corridor for evacuation of wind and solar power.

The government would develop the Machilpatnam port and 14 other seaports under PPP mode including Bhavanapatnam and Kalingapatnam. He said the Centre had proposed the establishment of a second major port in the state and one more commercial port at Kakinada. The state has also decided to support in expanding existing airports at Vijayawada, Rajahmundry, Tirupati and Kadapa.

Government has to do a tight rope walk. It is difficult to get clarity on revenue earnings of the state. YSRCP members have no understanding of the Budget. They only know how to loot the state – N Chandrababu Naidu

The budget is totally disappointing and has shattered the dreams of the people as it does not give any clarity on the loan waiver for farmers and DWCRA women – YS Jaganmohan Reddy

Finance Minister Yanamala has merely indulged in jugglery of figures. How a budget of this size is possible when CM says AP is facing bankruptcy? – CPI Secretary K Ramakrishna

Lowest priority has been accorded to welfare programmes. Several developmental projects, under the garb of PPP, given away to private investors – CPM Secretary P Madhu

The State government has ignored interests of Muslim minorities. Government is silent on continuance
of 4% quota – Cong leader Shabbir Ali