The Hindu Business Line : AP Budget thrust on farm sector; Rs 1,545 crore for welfare

HIGHLIGHTING the Budget estimates, Mr Rosaiah said that for 2006-07, the State programmed expenditure of Rs 40,624.24 crore under non-plan and Rs 22,903.50 crore under plan.

While this will result in revenue deficit of Rs 995.84 crore, the financial year 2006-07 is expected to end with a negative balance of Rs 94.32 crore.

While the State debt is set to touch Rs 82,719.97 crore next fiscal, as opposed to Rs. 74,533 crore, the Government would evolve a fiscal correction path for the Tenth Plan period of 2005-06 to 2009-10. Of the total debt, Central loans would be about Rs 17,883 crore.

THE State annual Plan outlay for 2006-2007 has been pegged at Rs 19,551.90 crore, reflecting an increase of about 24.93 per cent over last fiscal, with the lion's share going to the irrigation sector.

The State Finance Minister, Mr K. Rosaiah, said that during 2005-06, the State had the highest plan outlay in the country, and the allocation for next fiscal reflects a hike of 30.78 per cent in expenditure and about 25 per cent in Plan outlay.

Presenting the Budget, Mr Rosaiah said to expedite the irrigation projects, the Government has allocated Rs 10,000 crore, which reflects a 51.15 per cent hike for next fiscal.

Giving details of the Plan, Mr Rosaiah said the State has allocated Rs 1,602 crore towards panchayat raj and rural development, Rs 1,024 crore for urban development, Rs 1,545 crore for welfare , Rs 566 crore towards education, Rs 535 crore towards medical and health sector and Rs 1,161 crore for housing the weaker sections.

During 2005-06, the Gross State Domestic Product (GSDP) is expected to be Rs 1,17,434 crore, as against Rs 1,09,193 crore, translating into a growth of 7.55 per cent. The per capita income increased from Rs 23,153 last fiscal to Rs 25,526 this year.

Referring to good monsoon and farm output, Mr Rosaiah said the foodgrain production is expected to increase by 18 lakh tonnes to 152 lakh tonnes as against last year's output of 134 lakh tonnes. The kharif season ended with an improved foodgrain output of 91.20 lakh tonnes, an increase of 8.62 per cent.

The primary sector, he said, contributed about 23.7 per cent of the GSDP, providing livelihood to 72.7 per cent of the population.

Between April-November 2005, the industrial sector recorded a growth of 6.9 per cent over last year like other sectors; the mining sector (18.1 per cent) and manufacturing (6.8 per cent), with the capital goods (13.3 per cent).

Mr Rosaiah said he had inherited a difficult financial position and there has been a marked change in the overall financial situation.

On the promise to expedite 26 irrigation projects, Mr Rosaiah said allocation of Rs 10,000 crore for irrigation is unmatched and this would cover four major projects, including Polavaram.

Alongside, other important projects of employment guarantee scheme, housing and various social welfare schemes will ensure all-round development. The first phase of the Rs 500 core outer-ring road project would commence soon.

Mr Rosaiah said Rs 2,113 crore has been allocated for health, medical and family welfare, and about Rs 1,448 crore for higher and technical education next fiscal.

Due to improvements in the transmission and distribution network, the State Government has reduced the power subsidy from Rs. 1,600 crore to Rs 1,405 crore for next fiscal.

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