The Hindu Business Line : No new taxes in farmer-centric AP Budget

A LEG-UP TO FARMERS: A farm hand drawing water from a borewell near Kanjal village in Medak district recently. The State Budget places emphasis on development of the irrigation system with an allocation of Rs 4,245.72 crore for 2004-05, against last year's Rs 2,178.92 crore, an increase of 94.85 per cent. - A. Roy Chowdhury

Hyderabad , June 23

THE State Finance Minister, Mr K. Rosaiah, presented a farmer-centric Budget, with no fresh taxes for 2004-05 and an annual Plan outlay of Rs 13,291.20 crore.

There's a substantial increase in the budgetary allocation for the agriculture and irrigation sectors, which accounted for 44 per cent of the total Plan outlay. The budgeted Plan size will increase to Rs 15,207.87 crore if centrally sponsored schemes are included.

The Plan allocation for irrigation has been pegged at Rs 4,245.72 crore as against last year's Rs 2,178.92 crore, an increase of 94.85 per cent. Similarly, the budgetary allocation for the agricultural sector has been increased by 42.34 per cent from Rs 655.60 crore last year to Rs 933.19 crore.

Though the 2004-05 Budget has a deficit of Rs 49.91 crore, the Minister did not propose any new taxes.

"We do not intend to burden the people of the State with further tax liability but intend to mobilise revenues, with special focus on revenue buoyancy, improving the administration and efficiency of tax system and plugging the loopholes in the system to improve tax compliance," Mr Rosaiah said in his 31-page Budget speech in the Legislative Assembly on Wednesday.

He said the Government was also awaiting the final report of the Revenue Reforms Committee, headed by Dr E.A.S. Sarma, to take up further tax reforms for enlarging the State's revenue base.

While the budget allocation for the power sector stood at Rs 2,300.89 crore, an amount of Rs 1,197.64 crore has been provided for the welfare of Scheduled Castes, Scheduled Tribes, Backward Classes and Minorities. Under non-Plan, the Government has programmed for an expenditure of Rs 35,934.62 crore during the current fiscal.

The Minister said the Government would complete eight irrigation projects in the next two years and 18 more such projects over the next five years.

These apart, the Government would take up four major irrigation projects at Polavaram, Dummugudem, Yellampally and Ichampally on the Godavari by obtaining all the necessary clearances.

In the power sector, the capacity addition during the year is expected to be 386.25 MW, with the commissioning of 280 MW from the Konaseema Power Project and 106.25 MW from the Talcher plant of the National Thermal Power Corporation. It has also been programmed to electrify 7,163 habitations and commission four 400-KV, eight 220-KV and 33 132-KV sub-stations during the year.

The highlights of Mr Rosaiah's Budget include the Government's decision to appoint a committee for suggesting steps to protect aqua farmers from shrimp price fluctuations in the international market.

An amount of Rs 1 crore has been earmarked for the post-harvest fisheries project, with 100 per cent assistance from the Union government. A decision has also been taken to extend lease of inland water bodies from three to five years.

The Minister said the Government would accord top priority to development of infrastructure and setting up value-added agro industries. Biotechnology would also be encouraged by offering new incentives to entrepreneurs coming forward to set up R&D centres. Besides encouraging establishment of apparel export and textile parks, the Government would take steps to start weavers' clusters.

The Leader of the Opposition and former Chief Minister, Mr N. Chandrababu Naidu, said the Budget did not reflect the promises made by the Congress in its election manifesto. He also accused the Congress Government of "owning up" TDP's achievement. The allocations for various welfare programmes have been in this "anti-poor Budget," he added.

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