The Hindu Business Line : Focus only on irrigation, says Naidu

WHILE the Leader of Opposition, Mr N. Chandrababu Naidu, said the Budget document does not give adequate allocations to about 80 per cent of the population, since the emphasis is mainly on irrigation, the State Chief Minister, Dr Y.S. Rajasekhara Reddy, said that the allocation of Rs 10,000 crore for irrigation sector and focus on other welfare sectors, was like a "Dream come true, which others would not even dream."

Dr Reddy, detailing various sectoral allocations, including Rs 135 crore for the airport project, complimented the Mr Rosaiah and his team, for making this a reality.

Dream Budget: CM

Chief minister Dr Y S Rajasekhara Reddy today said the 2006-07 budget, presented by the state Finance minister K Rosaiah, was a 'dream budget'. Talking to newsmen here, he said the government would realise its dreams through this budget, which has allocated Rs 10,000 crore for the construction of irrigation projects in the state.

Chambers hail Budget

The Confederation of Indian Industry (CII), the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) have welcomed the State Budget for 2006-07, presented by Mr K. Rosaiah, Minister for Finance and Health, in the Assembly here on Monday.

The expected GSDP (Gross State Domestic Product) of the State for the year 2005 - 06 was likely to be Rs 1,17,434 crore, showing a growth rate of 7.55 per cent over the previous year.

"This is a clear indication that the economy is on a high growth trajectory," Mr M.K. Patodia, Chairman of CII (Andhra Pradesh), said.

Reacting to the Budget, he said the increase in allocations for the productive sectors was a welcome move.

"This high plan outlay would lead to a strong industrial base and boost the growth of the secondary sector in the years to come," said Mr Patodia.

Both the CII and FAPCCI termed it encouraging the target to reduce fiscal deficit to 2.6 per cent in 2008-09 from 3.6 per cent in 2005 - 06 and ultimately become a revenue surplus State by 2008 - 09.

While welcoming the priority given to agriculture and irrigation sectors, the FAPCCI felt that industry and infrastructure deserved more attention and better allocation.

This was important to make the State a leading industrial estate with world-class infrastructure, Mr C.V. Atchut Rao, President of FAPCCI, said.

Mr C. Parthasarathy, Chairman of FICCI's State Council, described the Budget as a `vision oriented' one. The focus on the primary sector would help the State increase productivity in agriculture in the long run.

"Increased thrust on irrigation projects and initiatives like Agriculture Technology Mission will result in quantum jump in the agricultural productivity.

This will have multiplier effect, leading to increase in the demand for industrial goods and other services," he said.

He, however, felt that a lot needed to be done with regard to water management, marketing of agricultural products and post-harvest handling.

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