The Hindu : Front Page : 10,000 cr. for irrigation

Online edition of India's National Newspaper
Tuesday, Feb 21, 2006

Front Page

Front Page

10,000 cr. for irrigation

Special Correspondent

Rs. 996-crore deficit budget presented; two-thirds share for non-plan expenditure

RYOT-FRIENDLY: Finance Minister K. Rosaiah presenting the budget in the Assembly in Hyderabad on Monday as Chief Minister Y.S. Rajasekhara Reddy looks on. - Photo: Satish H.

HYDERABAD: Surpassing all records in the outlay for irrigation by any State Government thus far, the Andhra Pradesh Government on Monday allotted a whopping sum of Rs. 10,000 crores for this sector in the annual budget for 2006-07.

The budget is so heavily tilted in favour of the farmer that irrigation, agriculture and power account for a lion's share (61 per cent) of the Rs.19,551.90-crore State plan outlay for the coming year.

Presenting the annual budget in the Assembly, Finance Minister K. Rosaiah said the allocation for the irrigation sector, which had been increased by 51 per cent this year, was "unmatched by any other State in the country."

Chief Minister Y. S. Rajasekhara Reddy later described it as "a dream come true budget." His reaction was understandable since the budget will give a massive boost to his brainchild, "Jalayagnam", an irrigation programme launched in mission mode to create additional irrigation potential of 92 lakh acres in the coming years.

The Finance Minister said that the State's economy was on a roll with the growth rate in the Gross State Domestic Product (GSDP) projected at 7.55 per cent, mainly due to a healthy 5.72 per cent growth in the primary sector -- 2 per cent more than the national average. With the State receiving copious rains, foodgrain production is expected to increase to 152 lakh tonnes, up from 134 lakh tonnes last year.

This is the third consecutive budget presented by Mr. Rosaiah after the Congress returned to power in 2004. In a rather laboured effort lasting for over 100 minutes, the Minister began by saying that the `reservoirs are full, there is all round greenery and a twinkle in the eyes of the farmers. I deem it a great privilege to present the golden jubilee budget... as the State completes 50 years of its formation."

Revenue deficit

In spite of positive economic indicators, the Finance Minister said the 2006-07 fiscal would end in a revenue deficit of Rs. 995.84 crores. However, he expressed confidence that the State would be revenue surplus by 2008-09 in line with the Fiscal Correction Path it had adopted on the advice of the Twelfth Finance Commission (TFC). Interestingly, the year 2004-05 closed with a revenue surplus of Rs. 286 crores but the opposition parties ridiculed the claim on the ground that the Government failed to spend budgeted funds.

In the Rs. 63,528-crore budget for the next fiscal, non-plan expenditure will constitute a share of nearly two-thirds with Rs.40,624 crores and the plan Rs. 22,903.50 crores (including Centrally-sponsored schemes). Mr. Rosaiah said the average per capita income had increased by 10.25 per cent to Rs. 25,526. The industrial sector was expected to record a 6.22 per cent growth rate and the services sector 9.15 per cent.

Social asset base

Mr. Rosaiah announced a slew of measures to strengthen the social asset base. These included construction of an unprecedented number of 17 lakh houses and allocation of Rs. 500 crores for house sites under Indiramma programme for the weaker sections, increase in the outlay for old age, widow, disabled and other pensions to Rs. 445 crores and allocation of Rs. 90 crores as the State's share for the National Rural Employment Guarantee Scheme.

A casualty of the stepped-up allocations to all these areas appeared to be the direct allocation to the welfare sector. Although the ruling party claimed a 36 per cent increase in the outlay for this sector, opposition parties took the Government to task for allegedly giving short shrift to the welfare of backward classes, scheduled castes & tribes and minorities once again.

A cause of worry for the Government in the coming fiscal will be the spiralling public debt, including loans availed from the World Bank. The budget projects an outstanding public debt in 2006-07 at a massive sum of Rs. 82,720 crores. Over 18 per cent of the revenue will go towards debt servicing alone.

Printer friendly page
Send this article to Friends by E-Mail