Thursday, March 10, 2016
Andhra Pradesh State Finance Minister Yanamala Ramakrishnudu on Thursday presented the State Annual budget for the year 2016-2017.
allocations in the budget
The Finance Minister in his budget speech said that the government has decided to take up a road grid project across the State. Under the project, all panchayats will be connected with mandal headquarters through all-weather roads and mandal headquarters will be connected to the respective district headquarters with two-lane roads. The district headquarters will be connected to each other with four/two lane rods and will be connected to the State Capital through four/six lane roads.
Fibre cable network:: The government had embarked upon the fibre grid project laying optic fribre cable laying optic fibre cable network across the State providing 10 to 15 Mbps connectivity. The project was started with an outlay of Rs.320 crore. Housing Sector:: The housing sector that was expected to generate four jobs for every Rs.1 lakh invested. Every rupee invested in the housing secotr would add Rs.1.54 to the GSDP and together with household expenditure it could go up to Rs.2.84. The government allocated Rs.1,132.83 crore for the housing sector.
Health sector:The government has given importance to health sector with an allocation of Rs.6,103.76 core with plan component of budget enhanced to Rs.2,933.73 crore from Rs.1,986.80 crore of the last financial year.
Priority irrigation projects:: The FM has listed seven priority projects – Pattiseema lift irrigation scheme, Thotapalli, Handri Neva, Galeru Nagari, Vamsadhara stage II, Veligonda and Gundlakamma reservoir to be completed by 2017-2018 and National project Polavaram Phase I is expected to be completed by June 2018.
Youth empowerment::The State government made an allocation of Rs.252.38 crore in the budget for youth empowerment alone 20 times higher than allocated last year. The budget estimates earmarked for sports promotion, entrepreneurship together would go up to Rs.888 crore and would be utilized for activities to directly empower the youth. In addition, 5 per cent of funds provided for SC, ST,BC, minority, Kapu and Brahmin groups would be for youth aged 18 to 35 years. An entrepreneurship institute is proposed and a world class sports infrastructure will be built in Amaravati that is hosting 37th National Games in 2019. Stadiums in all Assembly constituencies and three integrated sports complexes will come up in Tirupati, Visakhapatnam and Vijayawada. Over 30,000 posts would be filled in government sector in the near future. The State would strive to create 10 lakh jobs in the private sector said Yanamala Ramakrishnudu.
Public debt may go to Rs.1.7 lakh crore::
Public debt may shoot up to Rs.1.70 lakh crore by the end of the financial year. The total debt increased from Rs.1.56 lakh crore the financial year 2014-15. Market borrowings that stood at Rs.78,440 crore in financial year 2014-15 went up to Rs.95,453 crore at the end of the current financial year. The State paid Rs.9,478 crore as interest towards its debts during the current financial year. Market borrowings constituted a major chunk of 56 per cent of the total loan outstanding while loans from other sources accounted to 18 per cent. Borrowings from the Central Government stood at 8 per cent and loans form small savings scheme and PF constituted 9 per cent each.
‘It is a number game’, says Jagan
The leader of the Opposition in the Assembly YS Jagan Mohan Reddy termed the budget as a number game. He said that Chandrababu Naidu took over as Chief Minister in 2014, the debt burden on farmers was put at Rs.87.000 core and in the past two years, only about Rs.7,500 crore was actually allocated for loan waiver with Rs.3,500 crore more allocated in the budget. The Rs.11,000 crore thus allocated would not even match one-third of the interest component for the 36 months in question including current financial year, he said. The interest alone would work out to Rs.39,000 crore, he pointed out.