Budget: AP seeks more allocation from Centre

The state government prevailed upon the Union Finance Minister Pranab Mukherjee to allot and release to Andhra Pradesh Rs 16,026 crore from the Central Budget to enable the state to implement various welfare schemes being taken up.

State Finance Minister Ramnarayan Reddy impressed upon the Union Finance Minister at the recent Finance Ministers' Conference held on January 19, the need to release more funds on priority as the state organised the funds flow quite properly without resorting to overdraft besides organising funds or liquidity properly during 2005 to 2010.

Besides, the Minister put up a stand that a share of royalty on natural gas to be given to the state. The process of realising the natural gas in the Krishna and Godavari Basin has begun and therefore the state must get its due share, Mr Ramnarayan Reddy told the Centre.

While putting forth the state's plea for more allocation, Mr Ramnarayan Reddy brought to the notice of Mr Mukherjee, the various welfare schemes taken up in AP and asked him to identify seven districts as naxal infested areas and sanction funds for upkeep of forces in those areas among others.

Mr Ramnarayan Reddy also listed out a series of schemes and the state expenditure on them and urged the Union Finance Minister to share the burden of the state.

Similarly, the Jalayagnam also figured in his presentation which gained prominence in view of the crop loss and which would facilitate irrigation of over one crore acres.

National Status was sought for projects like Polavaram, Pranahitha-Chevella, Dummugudem etc for which state was to spend 10 percent of the funds.

Water conservation resulted due to drip irrigation or micro irrigation taken up for which the centre grant was only Rs 50,000 per unit and in its place Rs l lakh was sought.

The resources registered an increase of 25 to 27 percent and AP put up a better show of funds

flow now than till December 2010.

The reason for seeking more funds was because of non-budgetary expenditure like scholarships and fee reimbursements which the state incurred and which resulted in burden to the state.