The Hindu Business Line : Naidu calls for public debate on draft Budget

THE Andhra Pradesh Chief Minister, Mr N. Chandrababu Naidu, on Tuesday released the State's draft Budget for 2002-03 to the public in the form of `Annual Fiscal Framework for 2002-03' (AFF), and sought a public debate on it.

"I am giving a comprehensive picture of the State and placing all the fiscal details before the people, who are the stakeholders,'' Mr Naidu said while releasing the AFF document and a set of 16 strategy papers on various sectors of the economy and the Mid-Term Fiscal Framework.

He wanted all political parties, academicians, students and the general public to debate on the provisions of the draft Budget and make suggestions in the interest of the State.

The AFF document would be available on the Internet and suggestions forwarded would be considered while finalising the Budget for the next fiscal.

It lays down broad fiscal policy parameters such as fiscal deficit, revenue deficit and debt stock limits, besides desirable levels of allocations for priority sectors such as primary health, primary education, welfare and irrigation, and affordable levels of capital and non-salary O&M expenditures.

It states that the annual Plan outlay for 2002-03 was likely to be increased by 11.1 per cent to Rs 8,838 crore from Rs 7,956 crore in 2001-02.

The overall non-Plan expenditure is estimated to increase by 10.8 per cent from Rs 29,970 crore in 2001-02 to Rs 31,472 crore in 2002-03.

Mr Naidu said that the Central tax devolution to the State had declined from 5.2 per cent of the State Gross Domestic Product (GSDP) in 1995-96 to 4.57 per cent in 2000-01. Central taxes shortfall in 2001-02 stood at Rs 368 crore.

On the other hand, the State's own revenues have gone up from 6.3 per cent to 9.8 per cent during the past five years.

At the same time, its revenue deficit went up from 0.96 per cent in 1995-96 to 2.66 per cent in 2000-01, while fiscal deficit increased from 3.06 per cent to 5.4 per cent.

Also, the State's debt stock stood at 29.1 per cent of GSDP at the end of 2000-01, next only to that of Gujarat.

Salaries and pensions, as a proportion of State's own resources, went up from 73.4 per cent in 1998-99 to 82.3 per cent in 2000-01.

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