Yanamala presents Rs. 1.35 lakh Cr budget for AP
Yanamala presents Rs. 1.35 lakh Cr budget for AP
Finance Minister Yanamala Ramakrishnudu on Thursday presented Rs. 1,35,688.99 crore budget for Andhra Pradesh for the financial year 2016-17. While Non-Plan Expenditure is estimated at Rs. 86,554.55 Crore, the Plan Expenditure is estimated at around Rs. 49,134.44 Crore.
"The 2016-17 Budget estimates entail an overall increase of around 20.03 % over the 2015-16 budget estimates. While the Non-Plan expenditure is estimated to increase by around 10.07%, the Plan expenditure is estimated to grow by around 42.78% over the 2015-16 financial year. The estimated Revenue Deficit is around Rs. 4,868.26 crores and the Fiscal Deficit is estimated at around Rs. 20,497.15 crores. The fiscal deficit will be around 2.99% of the GSDP, whereas the Revenue Deficit would be around 0.71% of the GSDP," Yanamala said while presenting the budget in the State Assembly on Thursday.
Yanamala claimed that Andhra Pradesh has registered a high growth rate of 10.9%. "We have accomplished this in the face of adverse legacies of the past that continue to haunt the present: years of mis-governance, battered economy, severe scarcity of financial resources, and inadequate capacity for effective execution of projects," he said.
The Finance Minister said that AP's growth has been fairly equitable across the sectors, in harmony with its inclusive development agenda. Agriculture has registered a growth of 8.4%, compared to the national average of 1.12%; Services sector has recorded a growth of 11.39% against India’s 9.19%; and Industry sector has grown at 11.13%, compared to the national performance of 7.35%. The per capita income of our State has crossed Rs one lakh threshold to reach Rs.1.07 lakhs in 2015.
"Encouraged by the performance of the economy in 2015-16 financial year, we set ourselves an ambitious, but achievable, target of economic growth for the next financial year spread across all sectors of the economy. Notwithstanding the adverse global factors and modest national growth scenario, we are confident that the development projects launched by the government, revitalised private sector and exuberant citizen participation together will partner in scripting this growth story," he said.
The major items of expenditure under Non-Plan Budget include Salary - Rs. 33,776 Cr; Pensions - Rs. 16,140 Cr; Interest Payments - Rs. 12,258 Cr; Loan Repayments - Rs. 554 Cr; Non-Salary - Rs. 3,196 and Subsidies & Grant-in-Aid (Rs. 13,330 Cr) including Rs. 3,512 Cr towards Debt Relief to Farmers.
Under Plan Expenditure, Rs. 8,724 Cr have been allocated for SC Sub-Plan; Rs. 3100 Cr - Tribal Sub-Plan; Rs. 8832 - BC Sub-Plan; Rs. 1,000 Cr - Kapu Welfare; Rs. 702 Cr - Minorities Welfare and Rs. 65 crore have been allocated for the welfare of Brahmin Community.
Yanamala said that the construction of the new capital city of Amaravati would require about Rs. 15,000 Cr to Rs. 18,000 Cr in the next three to four years besides massive investment is required in infrastructure, provision of essential public services and successful execution of all development and welfare programmes. Stating the Amaravati would come up as a World Class Capital, he announced that Rs. 1,500 crores have been allocated in the 2016-17 Budget for its construction.
The Finance Minister said that AP continues to carry the revenue deficit of Rs 13,897 crores inherited from the 2014-15 financial year, as a "consequence of irrational bifurcation of the State." He said that unscientific bifurcation of the State resulted in the residuary Andhra Pradesh receiving 46 per cent of the revenues of the combined state while having 58.32 per cent of its population. "This resulted in a revenue deficit of Rs 16,200 Cr in the first ten months of the new State’s existence. Thus far, the Government of India has released only Rs 2,303 crores to bridge the resource gap, leaving the State with a huge revenue deficit overhang of Rs 13,897 crores."