The Hindu Business Line : AP Plan outlay up at Rs 32,973 crore

THE ANDHRA Pradesh Finance Minister, Mr K. Rosaiah, presenting the State Budget for 2007-2008 in the Assembly in Hyderabad on Monday. — Mohammed Yousuf

Advertisement

Hyderabad Feb. 19 The Andhra Pradesh Budget for 2007-2008 reflects a significant jump in Plan outlay at Rs 32,973 crore and Rs 48,023 crore under non-plan as against revised estimate of Rs 19,717 crore for the current fiscal.

Irrigation and housing sectors have witnessed a quantum jump in allocation.

The State Finance Minister, Mr K. Rosaiah, who presented his fourth budget after the Dr Rajasekhara Reddy Government assumed office, said the proposals would result in a revenue deficit of Rs 36.48 crore, which would be about 0.01 per cent of the State Gross Domestic Product (GSDP) and fiscal deficit would be 3 per cent of the GSDP.

Net surplus

After taking into account the overall transactions of the year, the State will have a net surplus of Rs 25.01 crore and the financial year 2007-2008 is expected to end with a negative balance of Rs 33.08 crore.

Mr Rosaiah said as per revised estimates for 2006-2007, the State would have a revenue deficit of Rs 53.54 crore against the budgeted revenue deficit of Rs 995.84 crore.

Although budget expenditure is increasing every passing year, the decline in revenue and fiscal deficits is ample proof of successful fiscal management.

In the preceding three years, tax collection increased by 18 per cent every year due to State's economy performing well recording annual growth rate of 7 per cent backed by tax reforms.

The State is making a concerted effort to attain targets stipulated by Fiscal Responsibility and Budget Management Act, 2003 and by achieving targets, the State secured Rs 1,078 crore interest relief and Rs 1,183 crore debt relief from the Central Government.

During the year, Rs 1,400 crore power subsidy has been transferred from Plan to non-plan.

Irrigation will now have allocation of Rs 13,002 crore (Rs 10,028 crore), agriculture Rs 2,141 crore (Rs 1,788 crore) and housing Rs 5,433 crore (Rs 1,823 crore).

While health sector was allocated Rs 2,726 crore (Rs 2,113 crore), education garnered Rs 7,858 crore (Rs 6,745 crore), school education Rs 6,181 crore (Rs 5,301 crore).

The welfare sector secured higher allocation at Rs 4,057 crore as against Rs 3,237 crore.

To shore up urban infrastructure, the Finance Minister mentioned about Rs 4,000 crore Outer Ring Road project, Rs 8,760 crore mass rapid transit system project, Rs 600-crore expressway project, and Rs 4,442 crore sewerage system project.

During 2006, the State had cleared investment proposals worth Rs 93,000 crore, which constitutes 10.2 per cent of the total investments in the country.

As per estimates, the State debt is set to go up to Rs 86,464 crore in 2007-2008 from Rs 77,952 crore during the current fiscal.

The Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy, later commended the Finance Minister and the department for increased allocation to core sectors such as irrigation and housing and for bringing down the deficit.

An allocation of over 50 per cent more is unprecedented, Dr Reddy said and felt that the focus on housing and Indiramma and other welfare schemes would help people in the rural and urban areas.

The Opposition leader and Telugu Desam President, Mr N. Chandrababu Naidu, described the budget as directionless and wanted to know if there was so much thrust on agriculture and irrigation, why the State output was lower now.

More Stories on : Economy | Andhra Pradesh

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