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GOVERNMENT of ANDHRA PRADESH
FINANCE DEPARTMENT
Previous Budget Speeches

FINANCE MINISTER'S BUDGET SPEECH 1965-66

Budget Speech
1965-66

Speech of
Dr.M.Channa Reddy,
Finance Minister

presenting the Budget for 1965-66
to the Andhra Pradesh Legislature
on the 24 th February, 1965.
Introduction

Sir,

I have pleasure in placing before the House the Budget Estimates for the year 1965-66.

Before proceeding further, I consider it my duty to pay homage to the memory of our great leader Pandit Jawaharlal Nehru whose ideals and spirit continue to be a source of inspiration not only to us but to the entire world. Mahatma Gandhi said about him "in bravery he is not to be surpassed. Who can excel him in the love of the country? He is pure as the crystal; he is truthful beyond suspicion. He is a knight sans peur, sans reproche. The Nation is safe in his hands". In the words of Gurudev Tagore " he has never fought shy of truth when it was dangerous nor made alliance with falsehood when it would be convenient". The prestige, efficacy and fine traditions developed by our Parliamentary institutions are due chiefly to the inspiration derived from Panditji. It was again his great vision that enabled the country to undertake successive Five-Year Plans on such ambitious scales. In the context of ideals he had set and the principles he had laid down we have to formulate our future policies.

The year 1965-66 will be the last year of the Third Plan period and incidentally the stepping stone for embarking upon the more ambitious Fourth Plan. Before explaining the Budget proposals for the coming year, I should like to review briefly the economic situation and also give some idea of the progress of the Third Five-Year Plan of the State with particular reference to its impact on the State finances.

Economic Situation:- The general economic condition of the State was normal throughout the year 1964 although the economic optimism generated was offset by the rise in prices in the last quarter. The agricultural production registered an upward trend of 5.10 points and industrial production by 14 points. In spite of increase in production due to several factors—institutional and economical. It is, however, to be remembered that the problem or prices is related to the economic situation in the country as a whole and cannot be judged with reference merely to the conditions obtaining in Andhra Pradesh alone.

Seasonal conditions:- The vagaries of monsoon have been responsible for considerable damage to life and property in several districts. Mahaboobnagar, Guntur, Krishna and West Godavari districts had heavy rains and unprecedented floods which resulted in not only damage to crops and property but also caused loss of lives. In other areas, however, the position was not so bad although in certain parts the crops were damaged on account of inadequate rains or the incidence of pests and crop diseases.

In order to provide adequate relief to the persons affected by floods and also to arrange for timely repairs to tanks, canals etc., damaged by floods, the Government sanctioned schemes costing about Rs.4.7 crores, nearly half of which is being spent in the current year and the balance is being provided in the next year’s Budget

Food situation:- The country has just passed through an anxious period of food shortages and rising prices of important food articles. The Government of India as well as the State Governments are all doing their best to meet the situation which has arisen due to an unfortunate combination of a number of factors, such as, adverse seasonal conditions, hoarding by merchants and producers, and, I am afraid , also by consumers. The Hon’ble Members are well aware of the steps which have already been taken by Government for the prevention of hoarding and sale of foodgrains, particularly, rice and paddy, at high prices. The Government has, on the one hand, to protect the interests of the producers by ensuring a minimum and reasonable prices to them, and on the other, it has to see that the consumers also do not have to pay unduly high prices. Unfortunately, there are elements in our society which are always bent on taking advantage of such situations. It is, however, gratifying to note that the concerted efforts of the Central and State Governments are having the requisite effect. Andhra Pradesh being a surplus producing State, has also undertaken to procure and export about 7 ½ lakh tonnes of rice, besides collecting another about 2 ½ lakh tonnes as a sort of buffer stock for local requirements.

Employment and Labour:- Employment situation showed some signs of improvement and the Employment Exchanges were able to place 37,577 persons in employment during the year as against 28,533 in the previous year. The position on the labour front reflected growing unrest among the industrial labour partly due to the increased Trade Union activities all over the country as a consequence of alround rise in prices.

Third Five-Year Plan

As the Hon'ble Members are aware, the Third Five-Year Plan of the State, as originally framed, envisaged a total outlay of Rs.305 crores which was later revised to Rs.312.66 crores in order to provide more funds for Minor Irrigation and Soil Conservation Schemes. The actual expenditure during the first three years of the Plan is expected to be of the order of Rs.165.45 crores thus leaving a balance of Rs.147.21 crores to be spent during the last two years.

The Annual Plan for 1964-65 provided for an outlay of Rs.72.54 crores. In order, however, to maintain the tempo of work on certain important Projects, it was decided to raise the Plan ceiling to Rs.79.48 crores by providing additional funds for the Nagarjunasagar Projects (Rs.4 crores), Tungabhadra High Level Canal Project (Rs.1.50 crores), and Agricultural Programmes (Rs.1.44 crores),. As regards 1965-66, it is proposed to spend Rs.100.33 crores of which Rs.81.15 crores are against original commitments, while the balance of Rs.19.18 crores represents additional outlay on the following items which cannot afford to wait.

 
 

Rs.Crores

Nagarjunasagar Project

9.00

Development of Nagarjunasagar Project area

1.05

Tungabhadra High Level Canal

1.73

Srisailam Power Project

4.00

Upper Sileru Thermal Scheme-I Stage

1.00

Kothagudem Thermal Scheme-I Stage

2.40
 

The need for these accelerated outlays has been accepted by the Planning Commission and the Government of India and it is hoped that they would be able to provide necessary additional funds.

The State's Third Plan thus now stands at Rs.345.26 crores as against the figure of Rs.305 crores. The original and the revised allocations of funds and the progress of expenditure by principal Heads of Development is as follows:-

 

Major Head of
Development

Revised Third
Plan Provision

EXPENDITURE IN

Revised
Provision for
1964-65

Outlay for
1965-66

Five
Years' Total
(colms
3 to 7)

 

 

1961-62

1962-63

1963-64

     
1 2 3 4 5 6 7 8

Agricultural Programmes

51.16 4.73 6.96 10.51 13.60 16.05 51.85

Co-operation and Community Development

28.77 4.62 5.64 5.51 5.97 7.04 28.78

Irrigation

75.33 14.89 13.98 15.82 20.06 26.24 90.99

Power

78.81 12.48 11.33 16.23 19.65 27.79 87.48

Industry and Mining

16.72 2.65 3.07 3.00 3.21 3.69 15.62

Transport and Communications

13.24 2.99 3.16 2.54 3.93 414 16.76

Social Services

46.58

7.12

7.77

9.60

12.55

14.84

51.88

Miscellaneous

2.05

0.21

0.28

0.36

0.51

0.54

1.90

Total

312.66

49.69

52.19

63.57

79.48

100.33

345.26

 

These figures do not include the Centre's share of expenditure on Centrally sponsored schemes, nor do they provide for the amounts required for initiating advance action on the Fourth Plan schemes as the later issue is still under discussion with the Planning Commission and the Government of India.

As a direct consequence of the impact of Third Five Year Plan, the revenue expenditure of the State has risen from Rs.84.98 crores in 1960-61 to Rs.161.23 crores in 1955-56, thus recording an increase of about 90%, distributed among the various Heads as follows:-

 
    Rs.Crores
 

Heads

Accounts
1960-61

Budget
Estimate
1965-66

Percentage of Increase

I Nation Building Services:      
Education      
Medical      
Public Health      
Agriculture      
Animal Husbandry      
Co-operation      
Public Works      
Community Development      
National Extension Service and      
Local Development Works      
Amelioration of Scheduled Tribes,      

Castes, and other Backward Classes

     
II

Debt Services (Gross)

6.93

17.32

143%

III

Pensions

1.77 3.15 78%
IV

Administrative Services (Parliament and State Legislature, General Administration, Administration of Justice, Jails, Police, Supplies and Disposals and Miscellaneous Departments)

14.96 20.86 39%
V

Other Heads

15.74 39.19 149%
  Total 84.98 161.23 90%
 
The State Revenues have also improved from Rs.85.29 crores in 1960-61 to Rs.154.53 crores in 1965-66 as will be evident from the following figures :-
 
       

Rs.Crores

  Heads Accounts
1960-61

Budget
Estimate
1965-66
Percentage of Increase
I

Share of Central Revenue from Income Tax, Union Excise Duties, Additional duties of Excise, Estate Duty and Taxes on Railway fares.

16.67 22.06

32%

II

Principal Heads of Revenue Land Revenue (including portion due to Irrigation)

9.30 19.20

108%

State Excise Duties

8.10 13.12

62%

Forest

3.55 4.21 13%

Registration

0.99 1.54 56%

Taxies on Vehicles

2.56 6.70 161%
General Sales Tax 11.89 20.05 68%

Sales Tax on Motor Spirit

0.93 1.95 109%
III

Receipts under other Heads

31.30 65.70 111%
  Total 85.29 154.53 81%
 
I shall now briefly indicate the position of the State Finances during the years 1963-64 and 1964-65 and then proceed to explain the Budget proposals for the ensuing year.

Accounts 1963-64

Revenue Receipts and Revenue Expenditure for the year 1963-64 amounted to Rs.136.36 crores and Rs.125.71 crores, respectively thus revealing a surplus of Rs.10.65 crores. Capital Outlay during 1963-64 amounted to Rs.33.78 crores while the Public Debt at the end of March 1964 stood at Rs.324.25 crores as against Rs.290.71 crores at the beginning of the year. Incomings and outgoings under Deposits, Loans, Advances and other Debt Heads registered a net outgoing of Rs.4.90 crores. As a result of all these transactions, the year closed with a balance of Rs.7.97 crores.

Revised Estimates 1964-65

Against the original estimate of Rs.136 crores, the Revised Estimate of Revenue Receipts for the year 1964-65 now stands at Rs.142.69 crores. The increase of Rs.6.69 crores has occurred principally under the following items:-

 
 

Rs.Crores

Income Tax

1.19

Taxes on Vehicles

1.30

Sales Tax

1.50

Interest

0.82

Stamps

0.31

Other Items

1.57
Total 6.69
 
The Budget Estimates for 1964-65 provided for a total Revenue Expenditure of Rs.135.86 crores of which Rs.26.55 crores was earmarked for development schemes under the Plan. The Revised Estimates now place the total expenditure at Rs.150.23 crores. There is thus an increase of Rs.14.37 crores which is the net result of increases and decreases under the following heads:-
 
 

Rs.Crores

Interest and Debt Servicing

3.24

General Administration

1.35

Police

0.32

Education

1.01

Medical

0.43

Agriculture

2.35
Public Health 0.36
Industries -0.44
Animal Husbandary 0.22
Irrigation 0.68

Labour and Employment

0.60
Public Works 1.94
Miscellaneous 1.23
Other Items 1.08
Total 14.37
 

Full details of variations under individual heads will be found in the Finance Secretary's Memorandum on the Budget.

The Revenue Estimates for 1964-65 are considerably strained due to the commitment on account of increase in dearness allowance to Non-Gazetted Officers sanctioned in April and again in October 1964 involving an expenditure of the order of Rs.4 crores in the current year, the demands on account of flood relief measures for which funds had to be provided immediately pending receipt of assistance from the Central Government which accounts for Rs.2.19 crores. After allowing for all these items, the year which was originally expected to have a surplus of Rs.15 lakhs is now expected to flow with a Revenue Deficit of Rs.7.54 crores.

Capital Outlay:- The Budget for 1964-65 provided for a Capital Outlay of Rs.34.89 crores. The Revised Estimate has now been placed at Rs.44.17 crores. The increase has occurred under the following heads:-

 
 

Rs.Crores

Nagarjunasagar Project

4.00

Tungabhadra High Level Canal

1.50

Book Adjustment on account of the proposed increase in the corpus of the Contingency Fund

2.00

Others

1.78
 
Public Debt:- The receipts and disbursements under Public Debt account for a net increase of Rs.44.18 crores in the outstandings at the end of the year over the figure this time last year.

Deposits, Loans etc:- The transactions under Deposits, Loans, Advances, Suspense and Remittance Heads are expected to result in a net outgoing of Rs.2.53 crores.

Cash Balance:- The year opened with a balance of Rs.7.97 crores and is expected to close with a minus cash balance of Rs.1.9 crores.

Budget Estimates 1965-66

I now turn to the Budget proposals for 1965-66.

Revenue Receipts:- The Budget Estimates for 1965-66 envisage a total Revenue of Rs.154.53 crores as against the Revised Estimate of Rs.142.69 crores for 1964.65, thus recording an increase of Rs.11.84 crores which has occurred mainly under the following heads:-
 
 

Rs.Crores

State Excise Duties

0.63

Taxes on Vehicles

0.40

Sales Tax

1.50

Interest

2.51

Union Excise Duties

1.09

Grants-in-aid from Centre

5.26
Other Items 0.45
Total 11.84
 
Revenue Expenditure:- The expenditure Budget provides for a total outlay of Rs.161.23 crores on Revenue account as against Rs.150.23 crores in the Revised Estimates for 1964-65, which is broadly classified as follows:-
 
   

Rs.Crores

 

Revised
Estimates
1964-65

Budget
Estimates
1965-66

(a) Ordinary Expenditure

120.81

125.68

(b) State Plan

23.01

27.48

(c) Centrally sponsored schemes

6.41

8.07

Total

150.23 161.23
 
The increase in the Ordinary Expenditure in 1965-66 as compared to 1964-65 has occurred primarily under the following heads:-
 
  Rs.Crores

(a) Education

2.63

(b) Medical and Public Health Services

0.82

(c) Irrigation

1.13
 
In addition to the provision required for normal maintenance of existing services and the amounts required for the Plan Schemes, the Budget provides increased grants over the current year's Budget for:-
 
   

Rs.Crores

 

Provision
In 1964-65

Additional
Provision in
1965-66

(a) House sites for Scheduled Castes

20

10

(b) Maintenance of State Highways

400

50

(c) Centrally sponsored schemes

6.41

8.07

    c. Maintenance of Roads under Zilla
Parishads and Panchayat Samithis
   

Dietary charges for patients and
Purchase of medicines

202 40

(e) Maintenance of Irrigation Sources

229 41

(f) Grants for Community Development
Projects

146 32

(g) Scholarships, Boarding
Grants, etc., to Scheduled Castes, Tribes,
Etc.

147 49

(h) Primary Education

793 157

(i) Secondary Education

360

40

 
Revenue Deficit:- The Revenue Estimate for 1965-66 reveal a deficit of Rs.6.70 crores as against the deficit of Rs.7.54 crores in the Revised Estimate for the current year.

Capital Outlay

Capital Outlay on the Plan and Non-plan Schemes next year will Rs.55.72 crores distributed under the following heads:-
 
  Rs.Crores

Irrigation

 

Nagarjunasagar Project

1,800

Kurnool-Cuddapah Canal

39

Tungabhadra High Level Canal

360

Rajolibanda Diversion Scheme

25

Kadam Project

15

Pochampad Project

137

Other Schemes

686

Power

 

Upper Sileru Hydro-Electric Scheme

500

Srisailam Hydro-Electric Scheme

453

Balemela Dam

150

Other Schemes

13
 
These do not include the power schemes which are being executed by the State Electricity Board.
 
  Rs.Crores

Industries

 

Andhra Pradesh Industrial Development Corporation

100

Miscellaneous

 

Road Transport Corporation

73

Secretariat and other administrative buildings

100

Other Schemes

11
 
Borrowings:- The Gross Borrowing are expected to be of the order of Rs.94.37 crores, of which Rs.30.33 crores are proposed to be utilised for repayment of old loans, while the balance of Rs.64.04 crores will be utilised for financing the Capital programme. This, however, does not include temporary Ways and Means advances and their repayment.

Deposits, etc:- Deposits and advances in 1965-66 are expected to result in a net out-going of Rs.9.72 crores.

Loans and Advances:- Some of the important items of Loans and Advances for development purposes are as follows.

1. Loans to Municipalities

2. Loans to Cultivators for land improvements, agricultural implements, etc.

3. Loans for fertilizers.

4. Loans to Co-operative Societies and Land Mortgage Banks.

5. Loans under Community Development Programme.

6. Loans under New Well Subsidy Scheme.

7. Loans to Andhra Pradesh State Electricity Board

Cash Balance:- The year is expected to close with a minus balance of Rs.10.20 crores, part of which will be covered by gilt-edged securities held by the State. As regards the balance, steps will have to be taken for the speedy recovery of the outstandings under Land Revenue, Sales Tax, State Excise Duties, Taccavi advances and loans for other agricultural and industrial purposes. It would be the endeavour of the State Government to see that all expenditure budgeted for is covered by resources.

Public Debt:- Public Debt liability of the State which stood at Rs.218.76 crores at the beginning of the Third Plan is expected to rise to Rs.432.09 cores at the end of March 1966. A major portion of the proceeds has been utilised for Irrigation and Power Projects which have a long gestation period with the result that the liability for meeting the current obligations on account of interest and instalments of the principal have to be borne by the present generation while the benefits will accrue after some years. We have, therefore, been pressing the Government of India for the postponement of recovery of interest on the Nagarjunasagar Project loans during the entire construction period. The Third Finance Commission had also made a specific recommendation to the Government of India to evolve a scheme of granting moratorium in such cases. Unfortunately, the Government of India have not so far seen their way to extend the period of moratorium in the case of this Project beyond 1962. Annual interest liability on the loan so far taken for financing the Nagarjunasagar Project now comes to about Rs.3.72 crores which is causing considerable strain on the State revenues. We have not yet given up hopes that the Government of India will be able to find a suitable solution to this problem.

Small Savings:- Small savings which are regarded as one of the important sources of finance, have not so far made any significant progress in our State. One of the reasons for this would appear to be that non-official and social organisations has not been associated with the movement in a very active and effective manner. It has, therefore, been decided that while Government Officers would continue to lend such assistance as may be required from time to time, the responsibility for spreading the movement should be transferred to non-official and social organisations and local bodies. It is hoped that this change in the arrangements and approach will show better results.

Progress of Development Activities

As usual a separate note has been circulated to the Hon'ble Members, which explains the growth of activities under different Heads of Development in the context of the Third Plan. It will not, however, be out of place to mention a few salient features on this occasion.

Education

Plan outlay has been raised from Rs.15.05 crores to Rs.18.10 cores in order to enable the Department to fulfil, as far as possible, the essential objective laid down in the Plan. It is proposed to appoint 1,000 additional Primary School teachers during the Budget year. Lower and Higher Secondary education has also received adequate attention. In fact, the targets under these heads have been slightly over-reached.

Steps have also been taken to improve the standard of education by expanding the training facilities for teachers and by providing incentives in the form of higher rates of stipends to teachers undergoing training and full salaries for the untrained teachers in service now undergoing training, and making necessary provision for the supply of science equipment to the secondary schools. The establishment of a State Institute of Education and the Science Education Unit will also, it is hoped, help in improving the quality of education.

University education has also made steady progress. Several new colleges for teaching arts and science have been opened. The UGC scales of pay have been introduced in most of the institutions. The formula for regulating grants-in-aid to private colleges has also been liberalised and necessary additional provision has been made in the next year’s Budget.

Provision for general scholarships under the Director of Public Instruction, which stood at Rs.16.51 lakhs last year and was raised to Rs.34.83 lakhs in the current year has been improved to Rs.40 lakhs next year. During the current year Government ordered a change in the mode of payment of scholarships and now these payments are being made through demand drafts on a monthly basis. Further, it is being considered to delegate powers to the concerned Heads of Institutions to renew all types of scholarships based on merit and income, instead of by the Head of the Department which is the present practice. It is also under the consideration of the Government to constitute a Board consisting of concerned Heads of Departments and representatives of Government to sanction the scholarships to the eligible students in time, keeping in view the National Scholarships and Loan Scholarships (sponsored under Government of India Scheme) to ensure speedy award of the scholarships and also to avoid one student getting more than one scholarship at a time from different sources.

The Plan provision for opening of new schools and upgrading of Middle Schools to High Schools has already been exceeded. It has, therefore, been decided to make a special provision of Rs.10 lakhs in the next year’s Budget for this purpose.

Another Rs.10 lakhs are being included for (a) grants to Panchayat Samithis for the maintenance of school buildings transferred from Government, (b) grants to small and financially weak Panchayat Samithis for the maintenance of school buildings constructed out of their own resources, and (c) grants to Panchayat Samithis for putting up new school buildings.

A special provision of Rs.3 lakhs has also been included in the next year’s Budget to provide the necessary incentive for the merit by instituting scholarships to the first three First Classes in both the S.S.L.C., and H.S.C. Examinations. Each scholarship shall continue for a period of four years if it is a degree course or for six or sever years, as the case may be, if it is a professional course. Further, it has also been decided to encourage the schools and institutions which produce such students by providing under this scheme adequate additional grants for improving their buildings and equipment.

As regards Technical Education, the programme for 1965-66 envisages the starting of Post-Graduate courses at the two Government Engineering Colleges at Anantapur and Kakinada and introduction of part-time Diploma Course for industrial workers in the Government Polytechnic at Visakhapatnam. It is also proposed to establish a new Engineering College from the next academic year at Nagarjunasagar Dam Site for which facilities in the shape of buildings for the College and workshops and quarters for teachers and students will be available to some extent.

Educational and Social Services:- Social services are going to receive more attention in the Fourth Plan than it has been possible to do in the last three Plans. According to the present thinking, the percentage of allocations for Education and Scientific Research in the Fourth Plan is likely to be of the order of 10.1% as against 7.7% in the Third Plan. In the Draft Plan for Andhra Pradesh which has been submitted to the Planning Commission, we have proposed a provision of Rs.64.5 crores for Education which constitutes 9.2% of the total proposed outlay as against 6.1% in the Third Plan. The emphasis in the Fourth Plan will, however, be more on Technical and Scientific Education in order that we may be able to train adequate number of properly qualified technicians for the industrial development programmes of the State.

This is an indicator of growing realisation that the pace of industrial expansion, for which substantial capital investment is being made from year to year both in the public and private sectors, cannot be accelerated without the availability of qualified technical and managerial personnel. Government, therefore, lay much stress on the expansion of technical education at all levels including Post-Graduate Courses. As a corollary to this, the teaching of basic sciences is also to be improved and Government is devoting considerable attention to encourage the study of these subjects by giving financial assistance and merit scholarships.

Students belonging to the Scheduled Castes, Scheduled Tribes and Backward Classes (which term includes economically backward classes also) will be provided scholarships and book-money and boarding grants on a much larger scale next year. The total budget allotment for these items under various heads in 1965-66 is at Rs.2.36 crores as against Rs.1.87 crores (excluding arrears) for the year 1964-65.

It is also proposed to simplify the procedures for the grant of scholarships. For instance, it is proposed to modify the existing procedures so that the students belonging to Scheduled Castes, Scheduled Tribes, etc., might, in future, draw their scholarships merely on the strength of a declaration from their parents instead of having to secure a certificate from any authority regarding their caste or class.

Students coming from the districts generally find difficulty in obtaining hostel accommodation. It is proposed to make a beginning by constructing a hostel in Hyderabad city to accommodate at least 200 college students.

Government also propose to give fillip to the District Library Movement by granting assistance on a more liberal scale to the libraries which are in need of such assistance.

Complaints are frequently received that whereas Government servants, pensioners, and other persons with fixed incomes have necessarily to show their correct incomes in the applications of their children for scholarships, other persons manage to secure scholarships for their children without disclosing their true incomes. It is proposed to introduce suitable procedures for remedying the situation.

The provision for acquisition of house sites for Harijans has been raised from Rs.20 lakhs in the current year to Rs.30 lakhs in 1965-66.

It is hoped that during the course of the year it would be possible for the State Government to introduce legislation for making Telugu the Official language of the State. Certain preliminary steps have already been taken for preparing the necessary ground for this purpose.

Medical and Health:- Apart from liberal increases in the grants for dietary charges for patients and purchase of medicines and equipment for the hospitals, provision is being made for the establishment of two Hospital Pharmacy Units on a pilot basis which, it is expected, will not only ensure prompt supply of fresh medicines but will result in considerable savings.

At present Government employees are being reimbursed the cost of expensive medicines purchased by them according to the prescription of the physician. But this facility cannot be availed of by the low paid employees who do not have the means to purchase the medicines in the first instance. It is, therefore, proposed to provide the N.G.O., Clinics with adequate stocks of all the medicines including costly medicines.

Government is actively considering the question of debarring the Superintendents of Government Hospitals and Principals of Medical Colleges from private practice so that they may concentrate on their administrative and academic functions. They will of course be suitably compensated for the loss of private practice to which they are now entitled. It is also proposed to reorganise the Hospital Committees at various places so that they may function more effectively and check the malpractices which are alleged to have crept into the organisations.

In order to relieve the Osmania General Hospital of the ever increasing pressure and demands for paying rooms, it has been decided to put up a separate building at a cost of about Rs.12 lakhs to serve as an In-Patient Ward attached to the Osmania General Hospital. Half of this amount is being provided in the next year’s Budget and the balance, together with funds necessary for furniture, equipment etc., will be made available in the following years.

A Regional Post-Graduate Medical Education and Research Centre will be established at Hyderabad from the next academic year. For this purpose it is proposed to utilise the buildings and other facilities available at the Osmania Medical College. In addition, 250 beds in the Osmania General Hospital and about 150 beds in some of the other hospitals, thus making a total of 400 beds, will be made available to the Post-Graduate Centre. The Government of India have been approached for the sanction of necessary funds for the establishment and maintenance of this Centre. Steps are also being taken to see that these arrangements do not, in any way affect, the facilities now available for admissions to the regular Degree courses. It is proposed to increase the seating capacity at the Gandhi Medical College, Hyderabad and the Kakatiya Medical College, Warangal by 30 in each case.

It has also been decided to start a Regional Medical College at Nizamabad from June 1966 which will involve an outlay of about Rs.2 crores. The construction programme for the College, Hospital, etc., will be taken in hand next year and the Government of India have been requested to sanction the necessary amounts for the execution of the programme.

The progress of Family Planning Programme is still rather slow and needs considerable impetus if we have to be assured of some definite results, say, by the time the next census operations are conducted. Central assistance which is now being made available for this purpose, unfortunately takes considerable time before it reaches the concerned people. It is proposed to simplify the procedures so that disbursements could be made from the State funds straightaway pending reimbursement from the Government of India.

It is also proposed to organise camps in rural areas for sterilisation operations and provision is being made in the next year’s Budget for providing more mobile vans and for setting up of such camps.

The Government Ayurveda College and the Nizamia Tibbi College to which admissions were discontinued in 1962, pending formation of new Suddha Ayurveda curriculum, were reopened this year. A new Suddha Ayurveda Course, based on the recommendations of Vyas Committee and pure Unani Course, have been introduced in these colleges and admissions were resumed at the rate of 50 students in each college.

Irrigation Projects

The Nagarjunasagar Project is making a steady and all-round progress. 72% of the masonry and concrete has already been laid while the excavation of main canals on either side has been completed to the extent of nearly 42%. The excavation of branches and distributaries is also in good progress. Schemes for development of ayacut have also been taken up early realisation of irrigation benefits. The Government of India have been good enough to provide additional funds to the extent of Rs.13 crores for accelerating the pace of execution of this Project. Of this amount, Rs.4 crores are being spent in the current year and balance of Rs.9 crores is being provided in the next year’s Budget. This is in addition to the normal annual grant of Rs.9 to 10 crores. Thanks to the timely assistance from the Government of India, it will be possible to create an irrigation potential for nearly 5.8 lakh acres by June 1966. Work on the Tungabhadra High Level Canal is also being pushed through at a faster rate than originally contemplated with the help of additional provision of Rs.1.5 crores in the current year and Rs.1.7 crores in 1965-66. In addition, adequate provision is being made for the Pochampad and Srisailam Projects. Other major and medium irrigation schemes are also receiving due attention and necessary funds are being provided for all such schemes.

Power Schemes

The provision for Power schemes in 1965-66 is of the order of Rs.27.8 crores, distributed as follows:-

 
  Rs.Crores

Upper Sileru Hydro-Electric Scheme

500

Srisailam Hydro-Electric Scheme

533

Kinnerasani Project

104

Kothagudem (1 st Stage)

815

Ramagundam Thermal Scheme

200

Balimela Dam

150

Telangana Hydro-Thermal Scheme

30

Transmission and Distribution including Inter-State Links

400

Other minor Schemes

47
 
A major portion of this expenditure will, however, be incurred by the State Electricity Board to whom necessary funds will be made available by the Government. In addition, the Board will be able to raise nearly Rs.4.63 cores from its internal resources and through market borrowings.

Roads:- In spite of increase in the provision for maintenance of roads made in the past, our roads are by and large still improperly maintained. The provision for maintenance of roads has, therefore, been increased by Rs.72.75 lakhs in the current year and by Rs.100 lakhs in the next year. In addition, a sum of Rs.50 lakhs is being made available to the Public Works Department for the purchase of road rollers in the current year. A similar provision is being included in the next year’s Budget.

Industries

The industrial projects in our State can be broadly classified as (1) Public Sector Projects which include (a) Central Projects, and (b) State Projects, (2) Private Sector Projects and (3) Co-operative Sector Projects. Industrial development in our State is taking place broadly on these lines.

In the case of public sector projects the Government is fully conscious that working of these projects must be considerably improved and for that purpose not only administrative officers are necessary but also something in the nature of a philosophy of public sector consciousness has to be developed in the administration and also in the working classes.

Public Sector has come to play a dominant part in our economic development and it is bed rock on which the concept of Democratic Socialism rests. The traditional meaning of monopoly undergoes racial transformation as far as public sector projects are concerned. We have to do our best to infuse confidence in the minds of the people in the philosophy of public sector.

The Government is doing its best to help the growth of the medium and small scale industries in private sector. This would serve the purpose of achieving the objective of associating the private individuals in the programmes of economic development.

Co-operative sector combines both the elements of public and private sectors. The Government is actively striving to develop this sector by way of co-operative industrial estates. The Andhra Pradesh Industrial Development Corporation and the Andhra Pradesh Small Scale Industries Development Corporation have played a notable role in providing financial assistance to the development of small scale industries and the co-operative industrial sector.

The Government is devoting its attention to train a cadre of Industrial Management personnel who can discharge their duties with full realisation of the role of public sector, and also to assist the private sector for rapid industrialisation.

The progress of the Central Sector projects located in the State such as the Bharat Heavy Electricals, the Hindustan Machine Tools and the Synthetic Drugs Factory has been satisfactory. A plant in the private sector, the Indian Detonators Ltd., has also gone into production.

In order to take full advantage of all the industrial climate and employment potential created by these large scale industries, it is necessary to set up ancillary industries. Steps are being taken to provide necessary incentives to the prospective entrepreneurs in the shape of supply of raw materials and such technical and managerial assistance as may be required for maintaining the quality and efficiency of the ancillary units. It will also be necessary to obtain suitable guarantees, on long term basis from the basic industries that they would purchase all the finished goods from the ancillary units.

Teams of Central Government officers have visited the State during the year for consideration of the location of other projects in the Central sector. A team of Polish experts has also visited the State in connection with the setting up of a Zinc Smelter Plant estimated to cost Rs.12 crores. The State Government has assured the availability of land, water and power facilities at Vizag and an early decision by the Central Government is expected in this regard.

The Central Government are also considering the location of a Marine Diesel Plant, a Railway Signalling Equipment Plant and a Tele-communication Cables Unit in the State. Hon’ble Members have already had a full-dress debate on the Steel Plant which is to be set up in the Fourth Plan in the public sector. The State Government have offered all necessary facilities in the Vizag area and have appointed a senior officer to present the data before the Anglo-American Consortium which is expected to make a final recommendation on the site within the next few weeks.

The question of regional imbalances in respect of industrial and economic development has been raised frequently in the past and the State Government have also been making strong representations to the Centre in the matter. It is gratifying that the Central Government and the Planning Commission have now come to appreciate the implications of this problems and steps are being taken to set right the situation. By its very nature, this is going to take a fairly long time, but what is important is the fact that the approach has taken a decisive turn in the right direction.

Two important private sector projects which have significance in the context of increased agricultural production are the Fertilizer Factories at Kothagudem and Visakhapatnam. In respect of the former, a company called the Hindustan Allied Chemicals, Ltd., has just been registered and a block of a thousand acres is being handed over to them for starting the construction work. The Coromandal Fertilizers at Vizag are also making steady progress and are expected to go into production in late 1966.

During the year, in pursuance of the decision already taken, a joint stock company was set up to manage the Andhra Pradesh Paper Mills at Rajahmundry The company is jointly floated by the State Government and the West Coast Paper Mills and is expected to go to the public shortly for a further share capital of Rs.66 lakhs.

The Singareni Collieries have passed through a good year in 1963-64, declaring a net profit of Rs.55.50 lakhs. The State Government has sanctioned a short term loan of Rs.25 lakhs to meet the immediate financial commitments of the company. A loan of Rs.54 lakhs has been converted into share capital in June 19964 and a further sum of Rs.96 lakhs is being invested as share capital for the expansion of the Collieries. The latter amount has been available by the Government of India as a loan and they themselves are investing an additional Rs.74 lakhs for the same purpose.

The Hyderabad Chemicals & Fertilizers, Ltd., were provided a loan of Rs.10 lakhs in July 1964 by the State Government for improving their financial position. It is expected that in the current financial year the company will show a reduced loss, which was of the order of Rs.12 lakhs during 1962-63.

During 1963-64, 41 licences have been granted by the State Government both in respect of new factories and expansion of existing factories. In a few cases production has already commenced in respect of these licences.

As regards the sugar industry, which is one of the most important as far as this State is concerned, there has been an appreciable increase in the crushing of cane during the current season. The Co-operative factories at Palakol and Amadalavalasa have been placed under the management of an I.A.S. Officer and have shown commendable progress in the last two months. Two factors are however causing grave concern to the sugar industry as a whole; (I) the low percentage of recovery that is being registered by all the factories, and (ii) the sugar price recently announced by the Government of India where only a nominal increase of 75 paise per quintal has been awarded as against Rs.7 in Madras State. Strong representations have been made by the industry, supported by the State Government, and it is hoped that the Government of India will find their way to revise the price award so as not to cause undue hardship to the industry.

Eighteen licenses have already been granted in the private sector for the setting up of spinning mills. The progress of the project has, however, been rather slow. Five of them have already gone into production, while some more are likely to be completed during the coming year. Government is keenly watching the situation and unless noticeable progress is reported in the case of the other remaining units steps may have to be taken to cancel their licences and to transfer them to other parties.

The State sponsored Corporations have registered satisfactory progress during the current financial year. The Andhra Pradesh Industrial Development Corporation has received 45 applications for financial assistance to the extent of Rs.13.79 crores and the total assistance so far sanctioned by the Corporation is of the order of Rs.3.5 crores. In the field of direct promotion of industries, the Corporation has launched a new company under the name of Indo-Nippon Precision Bearings, Ltd., for the manufacture of ball bearings, and another company under the name of M/s.Associated Glass Industries, Ltd., for the integrated glass project. Negotiations for technical and financial collaboration for the manufacture of insulators, pig iron and power cables are under way.

The Andhra Pradesh Mining Corporation is going ahead with the establishment of a cement plant at Bonakall in Khammam district for which a new company has been formed and orders are being placed for the machinery. The Corporation has also continued prospecting for asbestos, barytes, china clay, quartz and feldspar.

The Andhra Pradesh Small Scale Industries Development Corporation has provided assistance to the extent of Rs.66.40 lakhs to small scale industrialists in the State.

The handloom weavers are occasionally put to serious inconvenience due to glut in the market and Government has been extending temporary assistance from time to time. A provision of Rs.20 lakhs has been included in the next year’s Budget in order to extend necessary assistance to the handloom weavers by way of short-term loans.

An important administrative development during the year has been a complete reorganisation of the Directorate of Industries and Commerce and other associated Departments. Four Joint Directors of the Directorate formerly working at Hyderabad have now been transferred to regional headquarters at Vizag, Anantapur and Hyderabad to help more effectively the progress of industrialisation in these areas. Adequate financial and administrative powers have been delegated to these Joint Directors who would now be able to function largely on their own initiative, thus avoiding the many delays, of which industrialists frequently used to complain.

In addition to the Director of Industries and Commerce, two senior officers who have now been designated as Additional Directors have been entrusted with different sections of the Industries Department, to deal with the Government directly.

The Director of Central Stores Purchase is being redesignated as Director of Stores Purchase and Industrial Marketing to highlight his specific role in the marketing of products manufactured in the small scale sector of the State. The Stationery Section of the Department has been transferred to the Director of Printing who has been redesignated as the Director of Printing and Stationery.

Government Press:- As the Hon’ble Members are aware, we have been making provision in successive Budgets, for the last 10 years, for reorganising the Government Press and for providing it with new machinery and a new building. The project, however, could not make headway due to delay in the selection of a suitable site for the new building. A site of about 20 acres has now been finally selected which is located opposite the existing Press buildings and the foundation stone for the new Press building has also been laid. The entire project is likely to cost about a crore of rupees and will be completed in a phased manner over a period of a few years.

In regard to supply of essential commodities such as steel sheets, coal and coke, the position continues to be unsatisfactory. There has been some improvement however in the supply of cement for which additional allotments have been, bringing the total allotment per quarter to 1.2 lakhs tonnes which is still below the demand of 1.5 lakhs tonnes in the State.

The small scale industrial units are suffering heavily due to inadequate and uncertain supply of raw materials. This problem is not peculiar to Andhra Pradesh but is common to the entire country and needs to be tackled promptly and effectively both by the State and Central Governments. It is gratifying to note that the matter is receiving the attention of the National Development Council and I hope as a matter of policy a decision will be taken very soon.

In the small scale industrial sector, Government are constantly seeking ways of providing further assistance to the industrialists in the State. A technical Cell has been opened in the Directorate of Industries and Commerce which is now proposed to be expanded for the benefit of the small scale industrialists. A Committee consisting of experienced non-officials has also been constituted to scrutinise the preparation of such schemes and it is expected that the Committee would provide useful guidance to entrepreneurs in the State with adequate funds to invest in small scale industries. Another Committee has been set up for guiding the development of ancillary industries around heavy projects in the State. A co-operative industrial estate is also being set up at Sanathnagar with Government participation up to 20% of the share capital.

The Cottage Industries Emporium in Hyderabad has been reorganised and a new Managing Committee has been formed. The stocks of the emporium, some of which are very old, have been thoroughly re-checked and are now being sold at clearance rates. In order to promote the marketing of handicrafts and cottage industries, it is proposed to establish a number of emporia at important district headquarters and towns and a special provision of Rs.2 lakhs has been included in the next year’s Budget for preliminary expenses and provision of working capital. These emporia will be supervised by local Committees including members of the concerned Standing Committees of the Zilla Parishads.

As regards to Rural Industries Projects, useful work has been going on in the three project areas of Narsaraopet, Nalgonda and Anantapur. An amount of Rs.1.04 lakhs has been distributed as loan in the project areas.

A Central Supervisory Committee for the relief of unemployment in Hyderabad has been constituted and Rs.10 lakhs have been placed at its disposal for formulating schemes for the amelioration of unemployment in the twin cities. An officer of the rank of Deputy Director, Industries has been placed in charge of the schemes. The procedures have also been simplified to enable the timely and proper utilisation of the provision. In case it becomes necessary, the Government shall consider the possibility of providing further amounts.

It is proposed to reorganise a large number of common facility centres and training-cum-production centres which are now existing in the districts so as to function as regional centres with adequate equipment and well trained staff.

To ensure adequate supply of cloth of popular varieties at reasonable prices, the Government of India have introduced with effect from October, 20, 1964 statutory controls over the manufacture of cloth covering 45% of the total annual production. Local Vigilance Committees have been formed in all the municipal towns having a population of 25,000 and above and a State Vigilance Committee has also been constituted.

The State Government, with a view to obtaining expert technical and business advice, have invited a delegation of the All India Manufacturers’ Organisation for studying selected regions of the State. A team consisting of about a dozen persons drawn from the top hierarchy of Indian business are at present making a tour of the State and their report is awaited.

The demand for introducing the hire-purchase system for the Units in Industrial Estates has been accepted in principle and details are being worked out. It is proposed to develop more and more Industrial Areas by acquiring sites around Hyderabad as well as at the district and taluq headquarters and to develop the sites by providing them with necessary facilities by way of roads, water, power, etc. After development, these areas will be offered to individual entrepreneurs for setting up Industrial Units.

The Government of India in the Ministry of Rehabilitation have offered to provide funds for the starting to new industries so as to provide employment to the displaced persons from East Pakistan. A programme is being drawn up which could enable an industrial complex to be set up at Kothagudem-Ramagundam, utilising the natural resources available in that area. It is hoped that this region would develop into a major industrial belt of the State and provide employment to a large number of persons including refugees from East Pakistan.

Agriculture

Besides continuing the various schemes of agricultural research, extension, etc., the Agriculture Department wash able to intensify its efforts towards stepping up of the production of food-grains and commercial crops like oil-seeds, sugarcane and cotton. Intensive Agricultural Development Programme is now in operation in thirteen selected districts and will be extended to the remaining seven districts in the Fourth Plan. A pilot scheme for Intensive Dry Farming was also launched with a view to achieving increased yields of dry crops like jowar, bajra, other millets, pulses (excluding gram), cotton and groundnut in the dry districts having scanty rainfall. The adoption of the above practices has resulted in an increase of 15.5% in the yield of rabi jowar.

Agricultural production depends primarily on adequate supply of improved varieties of seeds, intensive manuring and systematic plant protection measures. Several schemes for the implementation of popular varieties of seeds are already in operation in the research stations, State seed multiplication farms, and registered seed farms in the cultivators’ fields. Nitrogenous fertilizers are also very much in demand and the Budget provides for a sum of Rs.19.17 crores for the distribution of artificial manures and fertilizers. In terms of ammonium sulphate alone, the physical targets for the current and next years are 5.5 lakh tons and 6 lakh tons, respectively. The present level of consumption of pesticides in the country is of the order of Rs.6 crores, of which Rs.1.25 crores worth of pesticides are used in Andhra Pradesh alone.

The Government of India and the State Government are also financing a scheme aimed at demonstrating the benefits of pest control measures on large scales. The entire expenditure is being met by two Governments.

The use of improved varieties of agricultural implements is yet another factor in increasing agricultural production. Simpler types of implements are proposed to be manufactured in the Rural Community Workshops functioning in the Samithi Blocks, while other implements which require some skill in manufacture are proposed to be manufactured in the Government Industrial Workshops.

There is also a proposal for setting up the Agro-Industries Corporation which will undertake organisation of the processing of agricultural products and supply of farm implements and, in due course, will also supplement the supplies by establishing its own manufacturing units. The Corporation is likely to have an authorised capital of Rs.2 crores with a substantial participation by the Government of India.

Out of the Budget allotments next year, it is proposed to set aside an additional sum of Rs.25 lakhs for providing more tractors and power tillers to the cultivators under taccavi or to be kept with the Zilla Parishads and/or Panchayat Samithis, for the purpose of making them available to the individual cultivators on hire. The details are being worked out. Additional funds will also be made available depending upon the progress and response. I am happy that some of our local industrialists have started manufacturing of power tillers.

Agriculture in our country is both a source of food for our people and also a source of capital accumulation. Improvements in agriculture certainly depend on the use of new techniques evolved in the science and agronomy. Even the use of artificial fertilizers which are to be profitably absorbed by Agriculture for increasing food production is, to a certain extent, dependent on agro-technical knowledge. In order to develop this aspect of knowledge, the Andhra Pradesh Agricultural University was established in 1963 and it came into being on 12th June, 1964 when the first Vice-Chancellor took charge. It is expected that this University will not only make provision for education for the rural people but will also promote research work in the expansion of agricultural production programmes and in the use of modern techniques

Irrigation

Minor Irrigation:- Minor irrigation affords the quickest means of bringing new areas under irrigation. Every year about 5,000 new sources of open wells or tube-wells are being added to the existing numbers. About 5,330 pumpsets are being supplied in the current year, while the Budget for 1965-66 contain provision for distributing 5,625 sets to cultivators on loan basis. The Agriculture Department is also exploring the purchase of larger number of pumpsets on deferred payment basis.

Drainage:- The problem of drainage in irrigated areas has been engaging the attention of Government for quite sometime. It has become particularly acute in the areas catered by the Krishna and Godavari systems and the Nizamsagar Project where the fertility of soil is being adversely affected as a result of water-logging. There is, therefore, a great demand from the cultivators for making necessary arrangements for the prevention of water-logging and drainage of surplus water. In fact, some of the progressive cultivators undertook drainage schemes in their fields but all this has become infructuous as the entire Blocks have not been covered. Hon’ble Members are aware that the Government of India have setup a Committee under Sri Mitra with foreign and Indian experts, to study and make recommendations regarding the measures that could be adopted for protection against floods and for improving the drainage systems in the country. The terms of reference also include the study of the drainage systems under the Krishna and Godavari deltas. It is hoped that their recommendations will become available in a few months and that Centre will be able to provide the funds required for implementing their suggestions.

This will go a long way in protecting our valuable food crops for the Nation, especially in these days of food shortage. Government have decided to launch upon this programme in these areas and also certain other areas like Nizamsagar, where the problem has become acute and to complete it within a short and fixed period of, say, five years. We should also be prepared to meet our part of the obligations arising out of the recommendations of the said Committee.

Co-operation

Co-operation:- Arrangements for credit facilities to farmers through the medium of Land Mortgage Banks and other co-operative organisations continued to make steady progress. Chemical fertilizers are also being distributed on a very large scale through co-operative societies, mostly on consignment-cum-credit basis. There is , however, a strong feeling that the co-operative movement in Andhra Pradesh is still very much behind what has been achieved in certain other parts of the country. In order to enable the Co-operative structure in the State to meet the new challenges of the rapidly expanding activities in various sectors, the whole organisation needs to be streamlined at different levels. There are very few societies which are standing on their own legs. On the other hand, there is a tendency to rely too much on direct financial and other assistance from Government. While Government will continue to lend its helping hand at all times, it must be realised that the co-operative organisations must eventually depend on their own intrinsic strength and viability.

The organisation of credit for farmers is at the moment handled by several institutions and a number of Government Departments. This is creating great confusion and also hardship for the cultivators. The individual farmer has now to establish his creditworthiness at every stage and for each loan. This leads to a feeling of uncertainty among the farmers besides resulting in money being diverted for other purposes or kept idle. Government proposes to examine the whole problem in consultation with all concerned to evolve a system under which the creditworthiness of each farmer is established once for all and he is enabled to obtain the credit within the ceiling as and when required from any financing institution, or bank. It is also proposed to provide for the farmers to repay the loans as and when they find it possible, that is to say, more or less on the lines of general practice of running overdraft facilities available for persons in industries and other sectors.

Warehousing:- In order to meet the shortage of godowns facilities in the State, Government have accepted the offer of the Central Warehousing Corporation to build godowns in different districts with a total storage capacity of 3.35 lakh tonnes for which funds will be provided by the Corporation.

Minor Ports

Minor Ports:- The question of improving the several minor ports on our long coastal line has been engaging the attention of Government. It has not been possible to make such headway due to non-availability of equipment, particularly, dredgers. These have now been received from Russia and it is hoped that considerable progress will be made next year. There is also an ambitious programme for the improvement of minor ports during the Fourth Plan period.

Animal Husbandry

Animal Husbandry and Milk Production:- A number of schemes for improving the quality of live stock are being implemented and are making steady progress. Efforts are also being made to increase the number of sheep and poultry. Government have also taken up the Intensive Cattle Development Scheme in the milk-belt are of the Integrated Milk Project. Four chilling centres have been completed on the Vijayawada side. On the Hyderabad side the main dairy building will be completed by May, 1965. The programmes for 1965-66 aims at completing all the major civil works and the chilling centre at Hanuman Junction would also be commissioned which is expected to result in a further 6,000 litres a day milk collection for supply to the twin cities of Hyderabad and Secunderabad.

Fourth Plan

Fourth Plan:- The draft Fourth Plan of Andhra Pradesh which has been submitted to the Planning Commission envisages an outlay of the order of Rs.700 crores in the State Sector, besides an expenditure of Rs.75 crores on the Nagarjunasagar and Srisailam projects, which are proposed to be transferred to the Central sector. While the basic objectives of planning, more or less, follow the pattern which has already been accepted in the previous Plans, the draft Plan has been framed on the assumption that it will be possible to lay greater emphasis on education and other social services without impairing the growth of other sectors of development. Copies of the draft plan are being circulated to the Hon’ble Members.

Banking:- The Reserve Bank of India have decided to establish a full-fledged office at Hyderabad which is expected to start functioning as soon as their buildings are ready. This was a long felt need of local industry and business and, I am sure, it would provide a fillip to our industrial development.

Meanwhile, the State Bank of India have set up a separate Zonal Office at Hyderabad which will control the policies and operations of all the Branches of the State Bank of India located in the various districts of Andhra Pradesh except those functioning in Chittoor and Nellore. This has caused considerable concern to the people in these two districts. The matter has already been represented to the State Bank of India and, it is hoped, will receive the attention it deserves.

Railway Zone:- The Government of India have at last conceded our demand for setting up a separate Railway Zone at Secunderabad. This, I am sure, will go a long way in developing the trade and industry in the State.

Old Age Pensions:- This scheme was introduced in the State in 1961 but could not make much headway due to certain procedural and other difficulties. In order to ensure expeditious disposal of applications, the power to sanction these pensions has been delegated to the level of the Block Development Officer while District Collectors have been authorised to relax rules in deserving cases.

Government is fully conscious of the need for providing social security for all sections of the people and this is the first step in this direction. It is hoped that with the growth of economic prosperity, the State would be able to extend the scope of such measures.

The provision for Old Age Pensions has been raised from Rs.25 lakhs to Rs.40 lakhs and additional funds will also be made available if it becomes necessary. Government is also considering further simplification of the rules and procedures regarding grant of these pensions.

Under the existing rules, physically handicapped pensions are also eligible for the Old Age Pension under certain conditions. It is proposed to liberalise these rules further in their favour.

Abolition of Octroi

At present Octroi is being levied by the Municipal Corporation of Hyderabad and a few other City Municipalities in the Telangana area. This is yielding some revenues to these Local Bodies. It is seen that the net yield from this source is not commensurate with the expenditure involved in administration. Further it has proved to be a source of harassment and inconvenience to the farmers, small traders and also the consumers. In fact, it has been suggested by business circles that they would be prepared to pay a surcharge on sales tax instead of octroi.

Government have, therefore, decided to suggest to the Municipal Corporation of Hyderabad and other concerned Municipalities to abolish Octroi Duties with effect from 1st April 1965. They will be paid reasonable compensation for loss of the net income from this source. In order to raise necessary funds for this purpose, Government may have to think of certain adjustments in the scope and rate structure of sales tax and entertainment tax to which I shall refer presently.

Entertainment Tax

Entertainment Tax is now being levied in various parts of Andhra Region and the Hyderabad city at varying rates ranging from 20% to 33 1/2%, while the rates for Telangana districts range from 16 2/3% to 25%. With a view to further strengthening the finances of Local Bodies it is proposed to step up these rates suitably. The details are being worked out and necessary legislation will be introduced in due course.

Sugarcane Rates

Our rates of Land Revenue in respect of sugarcane are rather low as compared to the rates obtaining in some other States. There is also a disparity in the rates prevailing in the Andhra and Telangana regions. It has, therefore, been decided that the rates in the Andhra area should be increased and brought on par with those obtaining in Telangana. This will take effect from the next Fasli year.

Children's Corner

There is a strong feeling that while fairly large amounts are being spent for the expansion of educational facilities and improvement of public health services is general, we have not so far paid adequate attention to the provision of recreational facilities for our children. It is, therefore, proposed to earmark a suitable piece of land some where in the heart of the city, preferably in the Public Gardens, to be developed into a comprehensive Children’s Centre to be called `Nehru Vihar’ where the children of the country could be provided with a well-stocked library, parks, auditorium, swimming pools, and other recreational and educational facilities. Pending finalisation of details, a sum of Rs.2 lakhs is being provided in the next year’s Budget to start the preliminary work in addition to the land and buildings that can be earmarked for this purpose.

Non-Gazetted Officers

The N.G.O.s., constitute a vital part of the administrative machinery and have an important role to play in the building up of new, prosperous and happier India. The Government is fully conscious of the hardships experienced by them. The rise in prices had an adverse effect on their living conditions. In order to mitigate their hardships, therefore, the Government increased the rates of dearness allowance twice during the course of 1964, once in April and again in October by Rs.5 and 6 on each occasion depending on their salaries. The rates of dearness allowance admissible to work charged establishments have also been increased substantially.

While giving it for the second time, the Government had also decided to help the N.G.O.s., by making arrangements for supply of foodgrains at controlled prices and when the scheme materialises the increase given for the second time can be used for this purpose. In a venture of this nature the whole-hearted co-operation of everyone of their organisations is necessary and this would enable them to develop proper leadership in an important section of our administration. It is gratifying to note that the representatives of these organisations have shown a helpful attitude. The details of the scheme are being worked out and Government hopes that it would be advantageous to them in improving the economy of individual families more effectively than ad hoc increases which may not, in the context of our economy, result in material benefits.

The N.G.O.s., and their leaders have, I am glad to say, taken a very responsible and constructive attitude towards Government’s efforts to find solutions to meet the present difficult situation. The Government is keen on implementing the scheme and will also be prepared to provide a little more money, if found necessary.

Pay Commission:- I am happy to announce that as promised by the Chief Minister some time back the State Government have decided to appoint a Judge of the High Court as a one man Pay Commission. The terms of reference are being finalised. The Commission will no doubt give adequate opportunities to all concerned to represent their points of view, before formulating its recommendations.

Administrative Efficiency:- Hon’ble Members are also, perhaps, aware that the Government have already set up an Administrative Reforms Committee under the Chairmanship of my Hon’ble colleague, the Minister for Revenue. In addition, there is a Standing Administrative Reforms Committee consisting of the Chief Secretary and a few senior officers which has been entrusted with the task of reviewing continuously the administrative procedures, etc., with a view to improving the efficiency of the various Departments. In the event of any staff being found surplus as a result of the findings of this Committee, it will be possible to find alternative employments for these people in the various development departments in view of their ever-increasing needs.

There are frequent complaints that even the works in progress which have been going on for several years have to be sanctioned afresh every year which necessarily leads to delay in the execution of programmes in the field. It has, therefore, been decided to authorise the Heads of Departments to proceed with the execution of continuing schemes for which provision has been made under the concerned heads without waiting for the formal renewal of sanction by Government in each case.

The treasuries and sub-treasuries are also proposed to be strengthened in view of the growing volume of monetary transactions in recent years due to the implementation of the Plan schemes. At present there are sub-treasuries at a few district headquarters only. These sub-treasuries not only relieve the district treasuries of a lot of unnecessary work but also help in timely disbursements. It is proposed to set up sub-treasuries at places where they do not exist now.

The N.G.O.s., constitute a vital part of the administrative machinery and have an important role to play in the building up of new, prosperous and happier India. The Government is fully conscious of the hardships experienced by them. The rise in prices had an adverse effect on their living conditions. In order to mitigate their hardships, therefore, the Government increased the rates of dearness allowance twice during the course of 1964, once in April and again in October by Rs.5 and 6 on each occasion depending on their salaries. The rates of dearness allowance admissible to work charged establishments have also been increased substantially.

While giving it for the second time, the Government had also decided to help the N.G.O.s., by making arrangements for supply of foodgrains at controlled prices and when the scheme materialises the increase given for the second time can be used for this purpose. In a venture of this nature the whole-hearted co-operation of everyone of their organisations is necessary and this would enable them to develop proper leadership in an important section of our administration. It is gratifying to note that the representatives of these organisations have shown a helpful attitude. The details of the scheme are being worked out and Government hopes that it would be advantageous to them in improving the economy of individual families more effectively than ad hoc increases which may not, in the context of our economy, result in material benefits.

The N.G.O.s., and their leaders have, I am glad to say, taken a very responsible and constructive attitude towards Government’s efforts to find solutions to meet the present difficult situation. The Government is keen on implementing the scheme and will also be prepared to provide a little more money, if found necessary.

Pay Commission:- I am happy to announce that as promised by the Chief Minister some time back the State Government have decided to appoint a Judge of the High Court as a one man Pay Commission. The terms of reference are being finalised. The Commission will no doubt give adequate opportunities to all concerned to represent their points of view, before formulating its recommendations.

Administrative Efficiency:- Hon’ble Members are also, perhaps, aware that the Government have already set up an Administrative Reforms Committee under the Chairmanship of my Hon’ble colleague, the Minister for Revenue. In addition, there is a Standing Administrative Reforms Committee consisting of the Chief Secretary and a few senior officers which has been entrusted with the task of reviewing continuously the administrative procedures, etc., with a view to improving the efficiency of the various Departments. In the event of any staff being found surplus as a result of the findings of this Committee, it will be possible to find alternative employments for these people in the various development departments in view of their ever-increasing needs.

There are frequent complaints that even the works in progress which have been going on for several years have to be sanctioned afresh every year which necessarily leads to delay in the execution of programmes in the field. It has, therefore, been decided to authorise the Heads of Departments to proceed with the execution of continuing schemes for which provision has been made under the concerned heads without waiting for the formal renewal of sanction by Government in each case.

The treasuries and sub-treasuries are also proposed to be strengthened in view of the growing volume of monetary transactions in recent years due to the implementation of the Plan schemes. At present there are sub-treasuries at a few district headquarters only. These sub-treasuries not only relieve the district treasuries of a lot of unnecessary work but also help in timely disbursements. It is proposed to set up sub-treasuries at places where they do not exist now.

Pensions:- There is a large concentration of pensioners at Hyderabad who receive their pensions from the Pension Payment Office at Motigalli, which causes considerable inconvenience to the pensioners. Small pensions are at present being disbursed through postal Money Orders and the possibilities of extending this system to the pensioners in the higher ranges are also being explored.

There are still complaints of delays in the settlement of pension cases. Government takes a serious view of such delays and non-compliance with instructions particularly those regarding completion of service books and initiating action one year ahead of the date of retirement.

A feeling has been frequently expressed in this House that the administration in Andhra Pradesh is top heavy as compared to some of the neighbouring States. While doing so, however, it has generally been overlooked that the number of districts in Andhra Pradesh is also larger than that of any Southern State which necessarily requires a larger supervisory and administrative apparatus at the Headquarters. It will also be interesting to note that the number of supertime scale posts in the I.A.S., Cadre in Andhra Pradesh is small as compared to the position obtaining in many other States.

Accountant-General’s Office:- I am glad to say that a major part of the office of the Accountant-General, Andhra Pradesh, which was formerly located at Madras, has been moved to Hyderabad. There is, however, a small unit still operating in Madras and, I understand, that steps are being taken to move this unit also to Hyderabad.

Panchayati Raj Services:- I should like to make a special mention of the Panchayati Raj Services. For the various categories of personnel working in the Panchayati Raj Institutions special rules governing their service conditions etc., have been framed and are expected to be issued before the end of the financial year.

Anti-Hindi Agitation:- It is unfortunate that t e anti-Hindi agitation took such a violent turn as demonstrated by the recent events. It is hoped that better counsels will prevail all over and a suitable solution to this vexed problem will be evolved very soon. It is high time that each one of us contributed to the restoration and maintenance of a calm and peaceful atmosphere, and not to stake the integrity of the country on this issue.

Finance Commission:- Copies of the Memorandum submitted by the State Government to the Fourth Finance Commission are already in the hands of the Hon’ble Members. We have made out a strong case for additional financial assistance from Centre by way of higher devolution of Central Revenues and larger Central grants, in order to enable us to meet our obligations during the Fourth Plan period. It is hoped that the Finance Commission will appreciate the magnificent tax effort of this State during the Second and Third Plan periods, its backwardness in the fields of Industry and Social Services, and the need for full and proper exploitation of the immense political available in the State in the shape of mineral wealth and other raw materials. The discussions with the Finance Commission are going to be held some time towards the end of April and I would very much welcome any suggestions that the Hon’ble Members may like to make for further strengthening our case.

There is a large concentration of pensioners at Hyderabad who receive their pensions from the Pension Payment Office at Motigalli, which causes considerable inconvenience to the pensioners. Small pensions are at present being disbursed through postal Money Orders and the possibilities of extending this system to the pensioners in the higher ranges are also being explored.

There are still complaints of delays in the settlement of pension cases. Government takes a serious view of such delays and non-compliance with instructions particularly those regarding completion of service books and initiating action one year ahead of the date of retirement.

A feeling has been frequently expressed in this House that the administration in Andhra Pradesh is top heavy as compared to some of the neighbouring States. While doing so, however, it has generally been overlooked that the number of districts in Andhra Pradesh is also larger than that of any Southern State which necessarily requires a larger supervisory and administrative apparatus at the Headquarters. It will also be interesting to note that the number of supertime scale posts in the I.A.S., Cadre in Andhra Pradesh is small as compared to the position obtaining in many other States.

Accountant-General’s Office:- I am glad to say that a major part of the office of the Accountant-General, Andhra Pradesh, which was formerly located at Madras, has been moved to Hyderabad. There is, however, a small unit still operating in Madras and, I understand, that steps are being taken to move this unit also to Hyderabad.

Panchayati Raj Services:- I should like to make a special mention of the Panchayati Raj Services. For the various categories of personnel working in the Panchayati Raj Institutions special rules governing their service conditions etc., have been framed and are expected to be issued before the end of the financial year.

Anti-Hindi Agitation:- It is unfortunate that t e anti-Hindi agitation took such a violent turn as demonstrated by the recent events. It is hoped that better counsels will prevail all over and a suitable solution to this vexed problem will be evolved very soon. It is high time that each one of us contributed to the restoration and maintenance of a calm and peaceful atmosphere, and not to stake the integrity of the country on this issue.

Finance Commission:- Copies of the Memorandum submitted by the State Government to the Fourth Finance Commission are already in the hands of the Hon’ble Members. We have made out a strong case for additional financial assistance from Centre by way of higher devolution of Central Revenues and larger Central grants, in order to enable us to meet our obligations during the Fourth Plan period. It is hoped that the Finance Commission will appreciate the magnificent tax effort of this State during the Second and Third Plan periods, its backwardness in the fields of Industry and Social Services, and the need for full and proper exploitation of the immense political available in the State in the shape of mineral wealth and other raw materials. The discussions with the Finance Commission are going to be held some time towards the end of April and I would very much welcome any suggestions that the Hon’ble Members may like to make for further strengthening our case.

Conclusion

As our great leader Pandit Nehru observed `` We have a long way to go and much leeway to make up before we can take our proper station with others in the van of human civilisation and progress. And we have to hurry for the time at our disposal is limited and the pace of the world goes ever swifter." Having decided to build up a society based on the teachings of Pandit Nehru which are enshrined so to say in the Preamble to the Constitution and the Directive Principles governing the State policy our task is no small one for we have to evolve a synthesis between parliamentary democracy and socialism and usher in a society based on social and economic justice and equality.

To achieve this deal, it calls for great sacrifice, self-control, and social consciousness guided by social purpose. In this process of evolving a democratic socialist society there is bound to be great stress on social values and incentives and I pray to God that He may give us strength and courage to fulfill our part. The Government fervently hopes that our efforts will be crowned with success with support and co-operation of the Hon’ble Members and the people and we shall reach our goal through triumphs of democracy.

 

JAI HIND

 
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