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The Andhra Pradesh Finance Minister, Mr Anam Ramnarayan Reddy, on Wednesday presented a tax-free, welfare-cum-development-oriented Budget for 2011-12, while maintaining that the next financial year will see economic buoyancy.
The budget presentation in the House was marred by suspension of a dozen members protesting with placards and blocking the speech.
Mr Reddy said the Government has programmed for an expenditure of Rs 1,28,542 crore, of which Rs 80,984 crore will be under non-plan and Rs 47,558 crore under plan. After adjusting accounts, the State is projected to have a revenue surplus of Rs 3,826 crore and a fiscal deficit of Rs. 17,602 crore, which would be 2.95 per cent of Gross State Domestic Product (GSDP).
Revised estimates
Outlining the revised estimates for 2010-11, he said the State is likely to have a revenue surplus of Rs 540 crore against the budgeted Rs 3,548 crore. The fiscal deficit is estimated at Rs 13,670 crore, about 2.6 per cent of GSDP.
Emphasising on fiscal prudence, he said during 2011-12, the State expects a tax revenue of Rs 56,438 crore as against Rs 46,999 crore, which represents a growth of 20 per cent. The Central transfers to the State are expected to be Rs. 32,218 crore.
“The non-cooperation movement, which is impacting tax collection, is temporary. We expect to be able to achieve our targets,” Mr Reddy said. The Irrigation department has been accorded Rs 15,010 crore as against Rs 15,011 crore, panchayati raj and rural development Rs. 4,953 crore (Rs. 4,221 crore), education Rs 4,461 crore (Rs 3,155 crore), agriculture Rs 2,148 crore (Rs 1,442 crore) and housing Rs 2,300 crore (Rs 1,800 crore). The energy sector has been allocated Rs 4,980 crore.
The Government has launched a special fund of Rs 400 crore for welfare activities.
MOUNTING DEBT
The public debt of the State is set to go up from Rs 1,23,226 crore this fiscal to Rs 1,41,150 crore in 2011-12. This works out to about 23.62 per cent of GSDP. Of this, the open market loan is likely to be Rs 78,380 crore, followed by Rs 17,660 crore from the Central Government, Rs 5,528 crore from autonomous bodies and Rs 39,580 crore from special securities and PF.
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