The Andhra Pradesh Government on Wednesday presented a tax-free ₹1,11,823-crore budget for 2014-15, with a Plan outlay of ₹26,673 crore and non-Plan expenditure of ₹85,151 crore.
Presenting the maiden budget of the residual State of AP, State Finance Minister Yanamala Ramakrishnudu described it as development and welfare-oriented, but presented it under severe constraints.
The Budget estimates account for two months of a combined State of Andhra Pradesh and 10 months of the residuary State as it was presented mid-year, he said.
The Government has estimated a revenue deficit of ₹6,064 crore and fiscal deficit of ₹12,064 crore. This works out to 1.16 per cent and 2.3 per cent respectively of the Gross State Domestic Product (GSDP).
These estimates include the receipts and expenditure of two months relating to the undivided state of Andhra Pradesh and the anticipated assistance of ₹14,500 crore from the Central Government post the State reorganisation.
Key highlights The revenue deficit of the residuary State will go up to ₹25,574 crore and fiscal deficit to ₹37,910 crore if the Central assistance is removed.
The revenue deficit and fiscal deficit will then be 4.84 per cent and 7.18 per cent of GSDP respectively. In this situation, the Centre’s approval is required to bring about flexibility as per the Fiscal Responsibility and Budget Management Act.
The Finance Minister said the loan waiver would be dealt with in detail in the Agriculture budget to be presented on August 22.
The Sate plans to create a Water Grid Corporation and transfer all the assets pertaining to drinking water supply to this corporation. This will raise resources and create a water supply network across the State.
Presenting the budget after 10 years, Ramakrishnudu said the State is banking on the Central Government to accord special status, and provide a special package of incentives as also the Fourteenth Finance Commission to improve the State’s financial position.
Highlighting the skewed distribution of revenues between the two States, he said the Government has come out with a series of white papers to explain the current situation and will bring out Missions to address sectoral concerns and thereby ensure all-round development. The Government has decided to re-draft the Vision 2020 document and help AP attain new heights.
The mission statements are aimed at accelerating the pace of development and the Government’s 100-day agenda is aimed at putting the administration back on track. The Government is moving towards decentralised administration.
Energy sector Referring to the energy sector, he said the Government was allocating ₹7,164 crore to the sector and the focus was on implementation of the Power for All Programme.
The State plans to develop a Green Energy corridor at an investment of ₹5,000 crore. It is proposed to develop 3,000 MW of wind and 2,000 MW of solar power in a phased manner in the State.
The irrigation sector has been allotted ₹8,465 crore and the State is banking on Central support to implement the Polavaram project.