Draft budget proposals announced

AP govt envisages Rs 2,500cr hike in irrigation sector outlay; prunes energy sector outlay

In line with the pronounced policy on the state's priorities, the Congress government has in its draft budget proposals further stepped up its allocation to the irrigation sector and pegged it at around Rs 6,500 crore, an increase of about Rs 2,500 crore from the current year's level.

The Andhra Pradesh government, which today placed its draft annual budget proposals for the year 2005-06 on its official website, has also marginally reduced the outlay for the energy sector to Rs 2,187 crore from Rs 2,300 crore in the current financial year.

The government has put up the draft budget proposals on the government website to elicit opinions and suggestions from interested sections of the populace. The annual budget, with necessary changes, if any, will be introduced in the state Legislative Assembly in the third week this month for approval.

"Placing the draft proposals before the people prior to the introduction of the annual Budget in the Assembly is part of a requirement of an MoU signed with the Union government on the fiscal accountability and transparency needs under the current reforms. Taking the opinion of the people into account on the overall budgetary priorities is certainly a welcome gesture," K Rosaiah, state finance minister told Business Standard.

The finance minister said that his government was also considering bringing in the fiscal accountability Act this year wherein fiscal discipline measures would be mandatory.

The previous state government led by N Chandrababu Naidu had followed a similar exercise twice, which included the organising of district-level meetings to discuss the draft budget proposals.

This time around the state government has treated the exercise in a matter-of-fact manner with the finance minister himself shying away from talking much on the draft proposals.

On the industrial development front, the state government has proposed an 83 per cent hike in plan outlay for the industries department from the existing Rs 120 crore to Rs 220 crore, which would be exclusively utilised for the infrastructure development required for industries.

The Plan allocation for agriculture sector too has witnessed an increase of Rs 180 crore at Rs 1,170 crore from Rs 990 crore during the current fiscal.

According to the draft proposals, the total Plan outlay stood at Rs 15,600 crore as compared to a total annual expenditure of Rs 54,000 crore. The finance department has envisaged a 10 per cent growth in overall revenue receipts and a 13 per cent growth in its own receipts.

The government has also made provisions for its pet programmes like Rajiv Pallebata. While Rs 92 crore and Rs 50 crore has been proposed to be allocated for Rajiv Pallebata (addressing rural community grievances during the visits of chief minister) and Rajiv Nagarabata (a similar programme in urban areas), Rs 150 crore has been earmarked for expenditure under the Assembly Constituency Development Programme.

Under the programme, each Assembly segment will be given Rs 50 lakh each, which would be spent on various works in consultation with the respective MLAs.

Mind your budget

• Govt reduces outlay for energy sector to Rs 2,187 crore from Rs 2,300 crore in current fiscal
• Proposes an 83% hike in plan outlay for industries department to Rs 220 crore
• Total plan outlay stood at Rs 15,600 crore compared to annual expenditure of Rs 54,000 crore
• Annual budget will be introduced in Assembly for approval in February third week