By IANS,
Hyderabad: Andhra Pradesh Finance Minister K. Rosaiah Friday presented a tax-free, revenue surplus budget for 2009-10 with an overall expenditure of over Rs.1 lakh crore (Rs.1,000 billion/$21 billion).
In his budget speech, the minister told the state assembly that the overall expenditure in fiscal 2009-10 would be Rs.1,034.85 billion, of it Rs.633.01 billion under non-plan and Rs.401.84 billion under plan heads.
“It is estimated that the revenue surplus would be Rs.24.06 billion. The fiscal deficit is estimated to be Rs.161.62 billion, which would be 3.96 percent of the GSDP (gross state domestic product),” Rosaiah said.
The total size of the budget this year was marginally higher than the 2008-09 budget of Rs.1004.36 billion.
Rosaiah, who was presenting a record 15th budget in the assembly, tabled full-fledged budget as he had presented vote-on-account in February in view of the scheduled elections.
The minister, whose Congress party retained the power, presented his sixth consecutive budget, in which a lion’s share has been allocated for the irrigation projects and the subsidies for free power to farmers and rice scheme.
Increasing the allocation for the irrigation sector from last year’s Rs.165 billion to Rs.178 billion, he said “Jalayaganam” will continue to be the flagship programme of the government. It is now substantially expanded to cover 81 projects with a capital outlay of Rs.1,760 billion.
The programme envisages creation of additional irrigation potential of more than one crore acres besides stabilising 21.75 lakh acres. Of the total annual plan, 48.59 percent will be spent on irrigation and about 30 percent on the social sector.
The minister announced the implementation of the two new electoral promises of the Congress government, increasing free electricity supply to the farmers from seven hours to nine hours a day and enhancing the quantity of Rs.2 per kg rice from four kilograms a person to 6 kilograms.
The subsidy on free electricity to the farmers has been increased to Rs.60.4 billion from Rs.23.85 billion last year.
While the state’s GSDP was more than 10 percent in the last four years, it came down to 5.53 percent in 2008-09.
Rosaiah said due to this, the shortfall in revenue receipts and capital receipts during the years was likely to be substantial but the central government has enhanced the limit of fiscal deficit up to 4 percent of the GSDP in order to make more funds available to the states for implementing key infrastructure projects.
While the health sector on the whole has got an allocation of Rs.38.21 billion, the finance minister has allocated Rs.9.25 billion for Rajiv Aarogyasri, the community health insurance scheme for poor.