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Andhra Pradesh News: 15th budget proposes no new taxes

Hyderabad, Feb 20 (Calcutta Tube) Andhra Pradesh Chief Minister K. Rosaiah Saturday presented his record, 15th budget for the state that has stepped up the net expenditure to Rs.113,660 crore and even managed a revenue surplus, despite refraining from any new tax proposal.

In his budget speech, Rosaiah, who holds the finance portfolio, told the state assembly that total expenditure for the fiscal would comprise Rs.73,347 crore under non-plan and Rs.40,313 crore under plan heads.

 

While no revenue deficit has been projected, the fiscal deficit has also been pegged at a comfortable level of the state’s geoss domestic product.

 

‘It is estimated that the revenue surplus would be Rs.3,548 crore. The fiscal deficit is estimated to be Rs.12,983 crore, which would be 2.97 percent of our GSDP (gross state domestic product),’ Rosaiah said.

 

The projected net revenue to be earned by the state in 2010-11 has been projected at Rs.113,675 crore, out of which the state’s share would be Rs.62,702 crore, while the rest will revert to the federal exchequer.

 

This apart, the state’s share in federal taxes would be Rs.14,505 crore, while central grants have been budgeted at Rs.13,441 crore. The expected capital receipts for the fiscal are Rs.23,027 crore.

 

The total size of the budget for the next fiscal is also higher than that for the 2009-10 budget of Rs.103,485 crore, said Rosaiah, who holds the record of having presenting 14 budgets in the past and now his first as the chief minister.

 

The veteran politician also announced the revival of constituency development programme, which allows each legislator to spend on welfare programmes in their constituencies. The programme has an allocation of Rs.1 crore per legislator and will cover all 294 assembly and the 90 legislative council constituencies.

 

The chief minister also announced new pension schemes for HIV/AIDS patients, apart from continuing with the social security pensions to the old aged, widows and the disabled. He proposed Rs.1,932 crore for these programme in the budget.

 

The subsidies for free power to farmers and Rs.2 a kg rice scheme will also continue, even as the allocations for agriculture and allied sectors has been kept at Rs.3,028 billion and for irrigation Rs.15,011 crore.

 

He also allocated Rs.3,000 crore for food subsidy, Rs.1,800 crore for housing, Rs.1,909 crore for social welfare, Rs.9,824 crore for school education, Rs.2,830 crore for higher education and Rs.4,295 crore for medical and health.

 

The chief minister alluded that the state could have done better but for the overall economic slowdown in the country, a spate of natural calamities and ongoing protests over the demands for a separate Telangana state.

 

‘Andhra Pradesh may have done extremely well, given our excellent track record, inbuilt strength of the state economy and an excellent administrative machinery, but for our trials and tribulations in the past,’ he said.

 

The chief minister also said the government proposed to keep the capital expenditure high for faster economic growth, and proposed a new industrial policy soon to attract large industrial investments, while calling for maintaining peace and harmony.

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