(MENAFN- Khaleej Times) The Andhra Pradesh government in its first budget presentation after the bifurcation of the state has projected a fiscal deficit of Rs102.The tax-free Rs1000.11 billion budget was presented in the State Assembly of the truncated state by Finance Minister Y Ramakrishnudu who attributed the revenue shortfalls to the ‘irrational and unscientific’ manner in which the previous UPA government carried out the division of the state. Ramakrishnudu belongs to Telugu Desam Party (TDP) which is part of the BJP-led NDA.
“From a revenue surplus budget in the united State Andhra Pradesh is now facing deficits on revenue and fiscal fronts due to the manner in which the Centre (then UPA government) carried out the bifurcation of Andhra Pradesh” he said in his budget speech. The TDP government is finding it difficult to mobilise resources to fund its populist schemes including waiver of loans to farmers and self-help women groups because of the resource crunch.
The state’s fiscal deficit works out to 2.30 per cent of GSDP (Gross State Domestic Product) while revenue deficit is estimated at 1.16 per cent of the GSDP. “These estimates include the receipts and expenditure of two months relating to undivided state of Andhra Pradesh and the anticipated additional assistance of Rs14.5 billion from the Government of India in the context of division of the state” the Minister said.
The maiden budget has earmarked Rs26.67 billion for plan expenditure while non-plan expenditure is pegged at Rs85.15 billion. Ramakrishnudu sought to strike a balance between welfare and development. Accordingly school education got a major chunk of allocation at Rs120.59 billion followed by Irrigation at Rs84.6 billion and energy Rs71.64 billion. Backward Classes welfare has been allotted Rs31.3 billion and tribal welfare Rs11.15 billion while minority welfare department secured an allocation of Rs3.71 billion.
The Finance Minister said the new State was primarily an agriculture based economy with less urbanisation as compared to Telangana and hence significant allocation had been made to the rural sectors. On the infrastructure front he said proposals had been sent to the Centre for establishing a major airport between Kakinada and Visakhapatnam while “no frills” airports had been proposed to be established in some more cities.
The State has decided to tap its human resources for achieving the targets set for IT development. The Government released a blue print covering 18 areas for IT development to achieve US $2 billion investments in software related services and another US $5 billion in electronic manufacturing by 2020.
“The government is contemplating planned decentralisation of services to ensure their effective delivery to the last mile while it was proposed to rejuvenate the administrative machinery that went off track due to the policies adopted by the previous Government” he said.
Plans were being drawn up to develop Machilpatnam port and 14 minor seaports under Public-Private Partnership mode including Bhavanapatnam and Kalingapatnam he said adding that the Centre has proposed establishment of a second major port in the state and one more commercial port at Kakinada. -newskhaleejtime.com For more news from Khaleej Times follow us on Facebook at facebook.com/khaleejtimes and on Twitter at khaleejtimes Follow khaleejtimes ->
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