 "AP raises plan outlay in 2016-17 budget")
Finance Minister Yanamala Ramakrishnudu said the rise in plan outlay by 42 per cent in the new budget was in line with the trend of increased plan and capital expenditure being seen in the current year.
The government has projected an estimated revenue deficit of Rs 4,868.26 crore for the year 2016-17, which is slightly higher than the revised revenue deficit estimate of Rs 4,140 crore for the current year. However, both these numbers are substantially lower compared to the originally estimated revenue deficit of Rs 7,299.78 crore for 2015-16 and around Rs 14,000 crore in 2014-15.
"I am confident that the 2016-17 budget will contribute to the growth momentum and ensure sustained double-digit growth for many years to come. It will open new vistas of opportunities to all sections of the society," the minister said while listing out various initiatives and schemes of the government and corresponding allocations in his two-hour speech in the state legislative assembly.
The proposed expenditure of Rs 1,35,689 crore includes a non-plan expenditure of Rs 86,554.55 crore and a plan expenditure of Rs 49,134.44 crore. "While the non-plan expenditure is estimated to increase by around 10.07 per cent, the plan expenditure is estimated to grow by around 42.78 per cent over the 2015-16 financial year," the minister said adding that the increase of plan size indicates a healthy growth in productive expenditure in the state.
The rise in plan outlay comes on the back of higher allocations to the irrigation and near- doubling of the outlay for the social sectors. The government has raised the plan outlay for irrigation sector to Rs 7, 325 crore from Rs 4,678 crore(budget estimate) in 2015-16. Similarly the plan outlay for social sectors, including housing, has been increased to Rs 21,556.97 crore as compared with the revised estimated expenditure of Rs 10,545 crore in the current year.
The government has made liberal allocations to the welfare schemes targeting scheduled casts, scheduled tribes and backward class communities as it has now only one more full budget to present before the next assembly elections that arrive in 2019. The allocations to social sector schemes include close to Rs 3,000 crore for social security pensions, close to Rs 4,000 crore towards waiver of farm loans and Rs 2,700 crore for public distribution system among other things
On the new capital city, Amaravati, the finance minister Ramakrishnudu said he has provided Rs 1,500 crore in the new budget, which would be used as seed equity enabling the Capital Region Development Authority (CRDA) to mobilise additional resources required for capital construction from infrastructure financing institutions and the market .
Explaining about the performance of various sectors, the minster stated that the government's efforts have resulted in a significant industrial growth of 11.13 per cent in current year. This growth has come from all the components of the industrial sector, namely 10.82 per cent in manufacturing, 10.98 per cent in mining and quarrying, 16.69 per cent in electricity, gas and water supply and 9.46 per cent in construction, according to him. Services sector grew 11.39 per cent and the government expects a higher growth of 15-16 per cent in the year 2016-17.