Andhra Pradesh government is likely to prefer its own welfare schemes to those to be implemented jointly with the Centre. According to a senior official, instructions have been given to all departments by the Department of Finance to get prior approval before implementation of any Central Scheme over and above the allocations to be made in the upcoming State Budget for 2022-23. The approval from the Department of Finance and the Chief Minister has been mandatory in this regard, as per a circular. Generally, Central Schemes provide funds ranging from 60 per cent to 90 per cent of the total expenditure of a scheme while the remaining funds have been pooled in by the states. As the State government has already been spending a ‘significant’ amount on the welfare schemes under its ‘Navaratnalu’ programme, there is a line of thought in the government that caution would be helpful in its approach to the Central Schemes. 

Not for other purposes

Further, unlike earlier, the funds being received from the Centre in lieu of its share in the schemes cannot be utilised for other purposes. As per the earlier budget estimates, Andhra Pradesh government’s contribution to the Central Schemes has been around ₹10,000-12,000 crore. “Given the challenging fiscal situation of the State government, it may now prefer its own welfare schemes which also give political mileage,’‘ said an official.

The State government is all geared up for a new budget for 2022-23. The budget session of the State Legislature begins on March 7 and the budget is likely to be presented on March 11, 2022, by Finance Minister Buggana Rajendranath.

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