The Hindu : Andhra Pradesh News : Rs. 55,331-cr. tax-free budget for State

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Saturday, Feb 19, 2005

Andhra Pradesh

Andhra Pradesh

Rs. 55,331-cr. tax-free budget for State

By K. Venkateshwarlu

HYDERABAD, FEB. 18. The Finance Minister, K. Rosaiah, today presented a tax-free Rs. 55,331-crore budget for 2005-06 in the State Assembly, the first full-fledged one by the Congress after it returned to power, giving a major thrust to irrigation.

The annual plan for 2005-06 is estimated at Rs. 15,650.77 crores, an increase of 17.75 per cent over the Rs. 13,291.20 crores last year. Amid thumping of desks by treasury benches, the Finance Minister said in tune with its election promise, the Government had allocated Rs. 6,350 crores to the irrigation sector, an unprecedented increase of 50.42 per cent over the current year (2004-05) outlay of Rs. 4,222 crores. This allocation to irrigation constituted 40.57 per cent of the total annual plan outlay for 2005-06.

Allocations for social welfare, industries, agriculture, tribal welfare, handlooms and minorities welfare too got a boost with the quantum of increase ranging from 27 per cent to 83 per cent over the previous year.

Harsh criticism

The budget did not impress the Opposition. The former Finance Minister and Telugu Desam Party (TDP) leader, Y. Ramakrishnudu, had harsh words for the budget. He maintained that the Congress Government was resorting to higher borrowings than the previous TDP regime, driving the State into a debt trap. The Left parties described it as "jugglery of figures" and that it failed to measure up to the expectations of the people.

"Budget is not merely a statement of accounts or of projections. My effort in this budget exercise is aimed at faster economic growth with investments in productive sectors with an emphasis on equitable development," Mr. Rosaiah said. His 80-minute-long speech was interrupted by TDP members, especially when he spoke of allocations to irrigation, free power and pensions.

During the financial year 2005-06, it was programmed to spend Rs. 37,639.71 crores under non-plan and Rs.17, 691.59 crores under plan, he said. This was expected to result in a revenue deficit of Rs. 1,401.38 crores accounting for 0.62 per cent of the Gross State Domestic Product (GSDP).

Fiscal deficit

The fiscal deficit is estimated to be Rs. 8,379.85 crores or 3.72 per cent of the GSDP. "After taking into account the overall transactions of the year we will have a net surplus of Rs. 37.17 crores and the financial year is expected to end with a negative balance of Rs. 15.93 crores," he said.

The Finance Minister said a concerted effort was made to reduce the percentage of revenue to fiscal deficit. Apart from Karnataka, Andhra Pradesh was the only other State, which was on course to eliminate the revenue deficit in the next few years.

New initiatives

The new initiatives include revival of the Assembly Constituencies Development Programme with allocation of Rs. 147.50 crores, Rs. 100 crores for infrastructure development for industries, 2.5 lakh new old age, disabled welfare and widow pensions and 50,000 fresh pensions for handloom weavers.

The Chief Minister's pet programmes — Rajiv Pallebata, Rajeev Nagarbata and Rajeev Yuvashakthi — get Rs. 92 crores, Rs. 50 crores and Rs. 124 crores respectively.

A Rs. 317-crore action plan for rehabilitation of tsunami-affected people would be implemented.

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