The Hindu : Andhra Pradesh News : Budget: boost for rural economy, says YSR

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Friday, Jul 09, 2004

Andhra Pradesh

Andhra Pradesh

Budget: boost for rural economy, says YSR

By Our Special Correspondent

HYDERABAD, JULY 7. Hailing the budget proposals for 2004-05 presented by the Union Finance Minister, P. Chidambaram, in Parliament today, the Chief Minister, Y. S. Rajasekhara Reddy, said he was confident that they would revitalise the rural economy.

Dr. Reddy was particularly happy that Andhra Pradesh would get additional Rs. 280 crores by way of share in Central taxes which would help reduce not only the State's fiscal deficit but also the revenue deficit from 0.97 to 0.83 per cent of the GSDP.

Speaking to reporters, the Chief Minister said the Union budget had largely reflected the priorities set forth by the State Government by laying extraordinary emphasis on agriculture, rural development, education, health and rural employment.

Highlighting some of the features which he welcomed, Dr. Reddy said the Finance Minister had enhanced the Central Plan by Rs.25,000 crores compared to the previous year. As a result, the Central budgetary assistance to State Plans would be increased by 20 per cent.

He said the allocation of Rs. 1,000 crores for agriculture extension and research, the proposal to provide 100 days of employment to rural poor and income tax exemption up to Rs. 1 lakh were commendable features. Dr. Reddy saw nothing wrong in the Centre giving Rs. 3,225-crore assistance to Bihar as it was economically crippled.

Disappointing: Naidu

Meanwhile, the TDP president, N. Chandrababu Naidu, described the budget as disappointing since it had failed to convert into reality the euphoria that the UPA Government created after coming to power.

The Finance Minister had made only cosmetic changes in the budget presented by the NDA Government, he added.

Mr. Naidu was highly critical of the decision to increase the service tax from 8 to 10 per cent.

He recalled that the TDP had opposed it even earlier since the Centre was taxing even the services provided by the States but refusing to share the revenue. The least I could do was to put the money in a joint pool.

Referring to the special package given to Bihar, he said Congress leaders of the State had failed to secure a similar package for the State. He said the budget had not given priority to building infrastructure, particularly the Golden Quadrilateral road network and the power sector.

Injustice again for State, says BJP

The Bharatiya Janata Party said that like the Railway Budget, the Union Budget too had little for Andhra Pradesh.

K. Laxman, general secretary, said South India, with the exception of Tamil Nadu, had been neglected.

After having gone through droughts for four successive years, Andhra Pradesh needed a grant more than any other State, he said.

The CPI, while lauding the budget for following the Common Minimum Programme of the UPA Government, said it had several weaknesses such as the decision to cut the interest rate on GPF and PPF savings to 8 per cent. The Secretary of the CPI State Council, S. Sudhakar Reddy, regretted that the budget had allowed 40 per cent FDI in insurance, 74 per cent in telecom and 49 per cent in civil aviation.

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