The Hindu Business Line : AP Ordinance coming for first quarter vote-on-account

CAUGHT in a piquant situation with the House dissolved and some more time to go in for polls, the Andhra Pradesh Government would take a vote-on-account Budget to be preceded by an ordinance that would empower use of funds from the Consolidated Fund for the first quarter of the next fiscal.

The Budget thus provided for the first quarter would authorise the State to draw from the fund to meet the expenditure for April-July 2004. The Government would approach the Governor with a day to spare ahead of the end of the financial year 2003-2004.

Thereafter, the State Governor, Mr S.S. Barnala, is expected to promulgate an ordinance in exercise of powers under Article 213 of the Constitution, thereby approving the vote-on-account.

The caretaker State Finance Minister, Mr Y. Ramakrishnudu, explained to presspersons the extraordinary circumstances under which the Budget would be passed.

While in the past, governments have been seeking the annual approval for a vote-on-account for three to six months, the Chandrababu Naidu Government is preparing the Budget for the first quarter of next year. This is so because the political system is pre-occupied with the election process.

While the Budget for 2003-2004 was about Rs 43,480 crores, with the plan expenditure of Rs 30,304.88 crore and non-plan budget of Rs 13,175.55 crore, the growth rate over the past has been about 12 to 15 per cent.

It is projected that the Budget for the first quarter of 2004-2005 will be about Rs 16,000 crore. These funds thus made accessible would go in for inevitable expenditure, mainly salaries and ongoing projects.

Grant from DFID: the Chief Minister, Mr N. Chandrababu Naidu, has said that the State Government would shortly get a $100-million grant from the DFID (Department for International Development) as a structural adjustment facility. Earlier, the World Bank had cleared $220 million towards structural adjustment loan.

Referring to some adverse findings by the Institute of Development Studies, of the University of Sussex, alleging misuse of funds, Mr Naidu dismissed them as incorrect and stated that the DFID is all set to clear a $100-million grant for structural adjustments.

More Stories on : Budget | Andhra Pradesh

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page